Explanation
BACKGROUND:
The Department of Public Utilities entered into contract in 2005 for development of updated rate models for the Division of Sewerage and Drainage and the Division of Power and Water. This was the first major review and rewriting of rate models since 1993. The models follow accepted design practice and fully account for changes in operations and asset valuations for each division. Customer cost of service was established and cost of service rates established for each customer group.
The proposed rate configuration for 2007 recognizes that water utility charges disproportionately effect lower income groups and continues a Low Income Discount program that discounts participant's water commodity portion of their quarterly bill by 15%.
Adjustments in rates result in a typical inside city residential water rate increase of 10%. When a sanitary sewer increase of 19.09% and a Stormwater increase of 8.5% are considered the overall impact on a typical residential customer in the City of Columbus is 14.99%.
The requested rate increase is .5% higher than anticipated last year for the year 2007. This increase is a direct result of an increase in the estimated expense of building the upground reservoir project. Increased debt service cost necessitates an increase of .5% in the rate increase.
FISCAL IMPACT: The Division of Power and Water expects an increase of $7,612,000 in overall revenue.
Title
To amend the Columbus City Codes, 1959, effective January 1, 2007, as it relates to water rates for customers of the Division of Power and Water.
Body
WHEREAS, it is necessary to establish new water services rates, effective January 1, 2007, for water service provided by the City of Columbus in order to recover the cost of rendering said water services for the calendar year 2007; and
WHEREAS, the City of Columbus, Department of Public Utilities Division of Power and Water requests a ten percent (10%) increa...
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