Explanation
SANITARY 2011
BACKGROUND
This ordinance authorizes an increase in sewer rates effective January 1, 2011 for the Division of Sewerage and Drainage.
The proposed rate configuration for 2011 recognizes that water and sewer charges disproportionately effect lower income groups and continues the Low Income Discount program that discounts participant's sewer commodity portion of their sewer bill by 20%.
Requested adjustments in rates result in a typical inside city residential sanitary sewer rate increase of 6%. When a water increase of 7.5% and a Stormwater increase of 0% are considered the overall impact on a typical residential customer in the City of Columbus is 6.21% and for an outside city residential customer 6.71%.
The proposed rate structure also continues the charge related to each customer's contribution to wastewater flow during periods of wet weather. Since wastewater flow during wet weather directly corresponds to impervious area, rates include a charge to recover costs of construction of projects necessary to meet the requirements of the two consent orders that mandate elimination of wet weather flow from Combined Sewer Overflows and Sanitary Sewer Overflows. This charge is assessed based on each property's measured impervious surface area. Each Equivalent Residential Unit (ERU) is based on 2000 sq ft of impervious area. Residents are charged at one ERU per residence. All other customers are charged based on measured impervious area divided by 2000 sq ft to determine an ERU equivalent. This charge is calculated to recover the debt service costs and other expense of all projects related to correcting wet weather overflows. It is also established that no customer will be charged for more than 1000 ERUs. This charge for 2011 is $2.95 per ERU inside city and $1.75 per ERU for outside city customers.
Fiscal Impact: These rate increases will generate approximately $9.2 million in additional revenue in 2011.
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