Explanation
Background: This ordinance authorizes, effective January 1, 2007, an increase in Stormwater charges per Equivalent Residential Unit (ERU) from $3.37 to $3.66 per month. This equals a monthly increase of $.29 and a yearly increase of $3.48 for a residential customer.
The Sewer and Water Advisory Board met on September 27, 2006 and after reviewing the Department of Public Utilities projected expenditures for 2007, recommends to City Council an increase of 8.5% in stormwater rates. This change is 3.5% more than the increase projected last year for the year 2007. Recent organizational changes within the department have resulted in support cost sharing by the enterprise funds based on number of customers. This is a more equitable allocation of costs than the previous method based on revenues. This shifts cost from the electricity enterprise to the stormwater enterprise. Since seventy-five percent (75%) of the electricity revenue generated represents the cost of purchased power a cost allocation based on revenue does not fairly charge support costs to the enterprise.
Fiscal Impact: The proposed rate increase will raise 2007 Stormwater revenues by approximately $2,074,000.00.
Title
To amend Section 1149 of the Columbus City Codes, 1959, effective January 1, 2007,to increase Stormwater fees,and to repeal the existing Section being amended.
Body
WHEREAS, it is necessary to increase the monthly Stormwater charges from $3.37 per Equivalent Residential Unit (ERU) to $3.66 per ERU to accurately match needed revenue to estimated program expenses; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That effective January 1, 2007, Section 1149.08(b) of the Columbus City Codes, 1959, be and is hereby amended to read as follows:
1149.08 Rate Structure
(b)The charge as prescribed in the rate schedule is as follows:
$0.1108 $0.1202 per day per Equivalent Residential Unit (ERU).
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