Explanation
Background: This ordinance authorizes an increase in water rates effective January 1, 2009 for the Division of Power and Water.
The proposed rate configuration for 2009 recognizes that water and sewer charges disproportionately effect lower income groups and increases the Low Income Discount program that discounts participant's sewer commodity portion of their quarterly bill from 15% to 20%. This increase in the discount rate will result in an overall rate reduction of -1.88% for a typical inside city customer. This legislation also eliminates receipt of the Homestead Exemption as a qualifier for receiving the Low Income Discount. Qualifying for Homestead Exemption is currently based on age and/or disability. Income was dropped as a qualifier by the State of Ohio and Franklin County in 2007.
Requested adjustments in rates result in a typical inside city residential water rate increase of 8.5%. When a sewer increase of 6% and a Stormwater increase of 9% are considered the overall impact on a typical residential customer in the City of Columbus is 7.11% and for an outside city residential customer 7.13%.
Fiscal Impact: The Division of Power and Water expects an increase of $8,460,000 in water sales revenue.
Title
To amend Chapter 1105 of the Columbus City Codes, 1959, to enact new water rates for the year beginning January 1, 2009, and to repeal the existing Sections being amended.
Body
WHEREAS, it is necessary to establish new water services rates, effective January 1, 2009, 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 Power and Water requests an eight and one half percent (8.5%) increase in water rates for 2009 to pay for necessary ongoing operations and needed improvements; 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 finds that continuing a discounted rate for low income users is a recognized method for helping to alleviate the impacts of increased water rates; and
WHEREAS, City Council finds that increasing the discount rate for low income users from 15% to 20% is appropriate to assist those least able to manage the impacts of increased sewer and water rates; 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 discount 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 Sections 1105.04 and 1105.21 of the Columbus City Codes, 1959, shall be and are hereby amended effective January 1, 2009 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 2. That the existing Section 1105.055 A of the Columbus City Codes, 1959, shall be and is hereby amended effective January 1, 2009 to read as follows:
1105.055 Outside city mastermetered contract water rates.
A. For areas covered by wholesale mastermetered contracts: the rates shall be as follows:
SEE ATTACHED FILE
1105.21 Low income discount for commodity charges.
(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) 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, Homestead Exemption or any other state or federal low income assistance program acceptable to the director.
(B) All low income residential customers may receive a fifteen (15) twenty (20) percent discount on the commodity portion of their water bill. This discount will be available to the low income residential customer upon application to and approval of the Department of Public Utilities.
(D) Master metered properties are eligible to receive a fifteen (15) twenty (20) percent discount on the commodity portion of their water bill if the property owner proves to the satisfaction of the director that eighty (80) percent or more of the rental units are participants in qualifying programs outlined in 1105.21(A). If the eighty (80) percent threshold is met, the entire building or complex will be eligible to receive the fifteen (15) twenty (20) 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 through the resident's utility billing from the property owner or agent.
Section 3 That water rates herein established shall be applicable to all water used on or after January 1, 2009.
Section 4 That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.