Explanation
This ordinance authorizes an increase in water rates effective January 1, 2025 for the Division of Water and amends Chapter 1105 of the Columbus City Codes, 1959.
Requested adjustments in rates result in a typical inside city residential water rate increase of 7%. When a sewer increase of 6% and a 1% increase in stormwater rates are considered, the overall impact on a typical residential customer's bill in the City of Columbus is 6.06% and for a typical outside city residential customer, the overall bill impact is 6.49%. Low Income Discount participant's overall bill impact is 6.0%. Outside city customers are not charged stormwater fees. Considering the 2025 rates increases for water, sewer, and storm combined -- based on an average residential customer with water use of 17 ccf's per quarter, City of Columbus residents are estimated to see their total bill increase $13.67 per quarter, or $54.67 per year. City of Columbus residents with a household of four or more with water use of 30 ccf's per quarter are estimated to see their total bill increase $21.41 per quarter, or $85.65 per year.
The Sewer and Water Advisory Board (SWAB) met on October 9, 2024, and after reviewing the Department of Public Utilities' projected expenditures for Fiscal Year 2025, recommends to City Council a 7% increase in water rates.
The proposed rate configuration for 2025 recognizes that water and sewer charges disproportionately affect lower income groups. The Department of Public Utilities will continue the Low Income Discount Programs that discounts participant's water commodity portion of their quarterly bill. The Board recommends an increase to the percentage of the discount from 20% to 25% and an increase in the qualifying federal poverty limit from 150% to 200%. The Department of Public Utilities will also continue the Eligible Senior Customer Discount that waives the monthly water service charges. The Board recommends an increase in the qualifying federal poverty limit from 150% to 200% for this program as well.
FISCAL IMPACT: These rate increases will generate approximately $14 million in additional revenue in Fiscal Year 2025. Combined with rate increases for Sewer and Stormwater, the overall impact to a City of Columbus' residents bill will be between 6.06% and 6.18%, depending on usage.
Title
To amend various sections of Chapter 1105 of the Columbus City Codes, to enact new water rates for the year beginning January 1, 2025; to expand eligibility for low income 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, effective January 1, 2025, 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, Department of Public Utilities, Division of Water requests that a 7% rate increase be applied to water rates for 2025; 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 20% to 25% will help reduce this financial impact to low income customers; and
WHEREAS, City Council finds that it is appropriate to expand the low income and eligible senior customer discount program from 150% of the poverty level to include customers that have a total income of less than 200% of the poverty level as published by the U.S. Department of Commerce, Bureau of Census; and
WHEREAS, the Sewer and Water Advisory Board has adopted recommendations that are consistent with the rates established in this legislation; and
WHEREAS, City Council finds that the rates and the low income and eligible senior discounts established therein are equitable to all of the City's customers; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the existing Section 1105.01 of the Columbus City Codes shall be amended effective January 1, 2025 to read as follows:
"Available frontage" shall mean the frontage for all parcels which abut on the water main. On corner parcels the frontage shall be the shortest frontage which abuts on a street right-of-way. Parcels which already abut on a water main shall not be considered as part of the available frontage.
"Commodity charge" shall mean a water use charge that varies in amount with the level of water the customer actually uses. This charge recovers the operating and maintenance costs associated with treating water to drinking water standards, providing the distribution network to provide water to customers, and recovers the cost of system capital improvements.
"Consecutive" shall mean the purchase of bulk water that is distributed to principally residential consumers including but not limited to apartment and condominium complexes, planned unit developments, and manufactured homes.
"Contract areas" means areas served with water by the city where a contract exists between the city and a political subdivision.
"Corner parcel" shall be a lot or parcel abutting on two (2) or more intersecting streets.
"Eligible senior customers" means any customer who:
(1)Is receiving service by means of a single meter to a single-family residence;
(2)Is personally responsible for payment of the bill as head of household; and
(3)Is sixty (60) years of age or older having a total income of less than two hundred (200) percent one hundred fifty (150) percent of the poverty level as published by the U.S. Department of Commerce, Bureau of Census.
"Front foot" shall mean the frontage that abuts on the street right-of-way. However, if a small section of a large property abuts the right-of-way, the front footage shall be the width of the larger more representative section of the property. When the property to be served does not abut upon a street right-of-way, front foot shall mean the width of the parcel.
"Noncontract areas" means areas outside the city served with water by the city where no contract exists with a political subdivision.
"Service connection" means the connection of all or any part of the service line to the tap.
"Service charge" shall mean a fixed charge to recover the costs incurred to provide service whether or not any consumption is used. These costs may include meter repair and replacement expenses, meter reading expenses, the costs of producing and mailing utility bills, applying payment as it is received, providing customer support and service, and other related water system costs.
"Service line" means the line extending from the tap onto the premises to be served and shall include all the necessary pipes, lines and appurtenances from the tap to and including the meter.
"Tap" means the connection to the water main and the necessary pipes or lines extending from the water main to and including the curb stop or valve and box.
"Total income" means the adjusted gross income of the applicant and spouse for the year preceding the year on which application for the senior consumer water rate is made, as determined under the "Internal Revenue Code of 1954," 26 U.S.C. 1, as amended, plus income from the following sources not included in the federal adjusted gross income: old age and survivors benefits received pursuant to the Social Security Act, retirements, pensions, annuities, payments received pursuant to the "Railroad Retirement Act," 45 U.S.C.231 et seq.; and interest on federal, state and local government obligations. Disability benefits paid by the Veterans' Administration or a branch of the armed forces of the United States on account of an injury or disability shall not be included in total income.
"Water service outside city" means water service furnished to consumers in contract areas or water service authorized by the Director of Public Utilities for consumers in noncontract areas.
SECTION 2. That the existing Sections 1105.04 and 1105.041 of the Columbus City Codes shall be amended effective January 1, 2025 to read as follows:
1105.04 Residential Inside city water rates.
The charges for Residential water supplied through meters to consumers within the corporate limits shall be based upon a service charge plus a commodity charge. The following rates shall apply to Residential water services within the city:
SEE ATTACHED FILE
1105.041 Commercial and Industrial Inside city water rates.
The charges for Commercial and Industrial water supplied through meters to consumers within the corporate limits shall be based upon a service charge plus a commodity charge. The following rates shall apply to Commercial and Industrial water services within the city:
SEE ATTACHED FILE
SECTION 3. That the existing Section 1105.055 of the Columbus City Codes shall be amended effective January 1, 2024 to read as follows:
1105.055 Outside city mastermetered contract water rates.
For areas covered by outside city wholesale mastermetered contracts, the rates shall be as follows:
SEE ATTACHED FILE
SECTION 4. That the existing Section 1105.21 of the Columbus City Codes shall be amended effective January 1, 2025 to read as follows:
(A)For purposes of this section, "low income residential customer" is defined as a direct residential customer of the city (whether inside the city or outside the city) having a total income of less than two hundred (200) one hundred fifty (150) percent of the poverty level as published by the U.S. Department of Commerce, Bureau of Census or who is eligible for food stamp benefits, Ohio Medicaid, Low Income Home Energy Assistance (LIHEAP), Home Energy Assistance (HEAP), Ohio Works First, Social Security Disability, public housing benefits, or any other state or federal low income assistance program acceptable to the director.
(B)All low income residential customers may receive a twenty-five (2025) percent discount on the commodity portion of their sewer bill. This discount will be available to the low residential customer upon application to and approval of the department of public utilities.
(C)The Director may adopt regulations necessary to administer and enforce the provisions of this section. Regulations promulgated, pursuant to this chapter by the Director shall be published in the City Bulletin, with copies of the regulations being available for public review at the Director's office and other locations which may be designated by the Director.
(D)Master metered properties are eligible to receive a twenty-five (2025) percent discount on the commodity portion of their sewer bill if the property owner proves to the satisfaction of the Director that the property meets one or both of the following criteria:
(1)eighty (80) percent or more of the rental units are occupied by participants in qualifying programs outlined in 1147.19(A); or
(2)the property receives subsidized housing benefits from any state or federal low income assistance program acceptable to the director.
If the criteria are met, the entire building or complex will be eligible to receive the twenty-five (2025) percent commodity rate discount. The discount shall be applied to the master meter bill. Property owners must transmit the full benefit of the discount to residents.
SECTION 5. That water rates herein established shall be applicable to all water used on or after January 1, 2025.
SECTION 6. That effective January 1, 2025, existing Sections 1105.01, 1105.04; 1105.041, 1105.055, and 1105.21, of the Columbus City Codes are hereby repealed.
SECTION 7. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.