Explanation
BACKGROUND
This ordinance authorizes an increase in water rates and fees effective January 1, 2027 for the Division of Water, creates a new high demand surcharge, and amends Chapter 1105 of the Columbus City Codes, 1959.
With the 2027 rates increases for water, sewer, and storm combined -- based on residential water usage of 5,236 gallons a month, or 175 gallons a day (which is also 7 centum cubic feet (ccf's) per month, or 21 (ccfs) a quarter), City of Columbus residents estimated bill increase is $10.29 per month, or $123.48 per year, or 9.9% above 2026. Income qualified discount participant's estimated monthly bill increase is $7.67 per month, or $92.04 per year, or 9.8% above 2026. Outside city residential customers estimated monthly bill increase is $12.68 a month, or $153.16 a year, or 11.1% above 2026. Customer bill impacts will vary with usage.
Residents with higher usage of 7,480 gallons of water a month, or 249 gallons a day (which is also 10 centum cubic feet (ccf's) per month, or 30 (ccfs) a quarter), may see their total bill increase $13.69 per month, or $164.28 per year, or 9.9% above 2026. Income qualified discount participant's estimated monthly increase is $9.88 per month, or $118.56 per year, or 9.9% above 2026. Outside city residential customers estimated monthly bill increase is $16.94 a month, or $203.28 a year, or 11.04% above 2026. Customer bill impacts will vary with usage.
The Utility Advisory Board (UAB) met on October 21, 2026, and after reviewing Columbus Water and Power's projected expenditures for Fiscal Year 2027, recommends to City Council an increase in such water rates and create a new high demand surcharge for commercial customers.
The proposed rate configuration for 2027 recognizes that water and sewer charges disproportionately affect lower income groups. Columbus Water and Power will continue the income qualified discount which discounts participant's water commodity portion of their bill. The UAB recommends an increase to the percentage of the discount from 30% to 35%. Columbus Water and Power will also continue the senior income qualified discount that waives the monthly water service charges. The income qualified program is also being amended to allow for automatic enrollment, if applicable, as well as expanded household eligibility to allow any member living in the household to show they meet the program eligibility requirements, not just the individual who the account's name is in.
FISCAL IMPACT: These rate increases will generate approximately $46.8 million in additional revenue in Fiscal Year 2027. Combined with rate increases for Sewer and Stormwater, the overall combined impact to a City of Columbus' residents bill will be approximately 10% above 2026 combined rates, depending on usage.
Title
To amend various sections of Chapter 1105 of the Columbus City Codes, to enact new water rates and charges for the year beginning January 1, 2027; to enact a new high demand water surcharge for commercial customers; to expand eligibility for income-qualified and eligible senior customer discount programs; and to repeal the existing sections being amended.
Body
WHEREAS, it is necessary to establish new water services rates and charges, effective January 1, 2027, for water service provided by the City of Columbus in order to recover the cost of rendering said water services; and
WHEREAS, the City of Columbus, Columbus Water and Power, Division of Water requests an increase be applied to water rates for 2027 in accordance with the changes to sections 1105.01, 1105.04, 1105.041, 1105.043, 1105.055, 1105.21 and 1105.22; and
WHEREAS, City Council recognizes that increased water rates disproportionately impact low income residents. Low income residents already pay a higher percentage of their household income in utility bills, and this percentage would increase with higher rates; and
WHEREAS, City Council further recognizes that past rate increases in the City have demonstrated that increasing rates leads to increased delinquencies among the City's customers; delinquency rates are higher among low income residents. It is well recognized that increased delinquencies are expensive for the City and its customers; and
WHEREAS, City Council finds that continuing the discount rate for low income users is appropriate to assist those least able to manage the impacts of increased sewer and water rates and recognizes that an increase from 30% to 35% will help reduce this financial impact to low income customers; and
WHEREAS, the City of Columbus, Columbus Water and Power, Division of Water requests that a new high demand uniform rate be enacted, in accordance with cost of service, to ensure commercial customers with high water demands pay for the additional capacity needed to meet their demands; and
WHEREAS, the Utility Advisory Board has adopted recommendations that are consistent with the rates and charges established in this legislation; and
WHEREAS, it has become necessary in the usual daily operation of Columbus Water and Power to amend Sections 1105.01, 1105.04, 1105.041, 1105.055, and 1105.21 for the public health, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. City Council finds that the requested changes in water rates and charges are equitable and in accordance with cost of service.
SECTION 2. That effective January 1, 2027, Section 1105.01 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - SECTION 1105.01.
SECTION 3. That effective January 1, 2027, Section 1105.04 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - SECTION 1105.04.
SECTION 4. That effective January 1, 2027, Section 1105.041 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - SECTION 1105.041.
SECTION 5. That effective January 1, 2027, Section 1105.043 of the Columbus City Code is hereby created to read as follows:
SEE ATTACHMENT 1 - SECTION 1105.043.
SECTION 6. That effective January 1, 2027, Section 1105.055 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - SECTION 1105.055.
SECTION 7. That effective January 1, 2027, Section 1105.21 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - SECTION 1105.21.
SECTION 8. That water rates herein established shall be applicable to all water used on or after January 1, 2027.
SECTION 9. That effective January 1, 2027, existing Sections 1105.01, 1105.04; 1105.041; 1105.055; 1105.21; and 1105.22 of the Columbus City Codes are hereby repealed.
SECTION 10. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.