Explanation
BACKGROUND: Systems Capacity Charges are charged to each new customer of the Water and Sanitary Sewer systems. Capacity charges are calculated to recover the new customer's fair share of the investment made by existing customers in the infrastructure of the system or to accurately reflect the new customer's share of growth planned in the system. The methodology adopted for calculation of capacity charges for the water distribution system is the incremental cost system which determines the cost of growth projects within the Capital Improvements Budget for 2006 and establishes a charge based on calculation of equivalent residential water meter taps. Since the capital improvements program for the Division of Water is well defined and is necessitated primarily by growth of the system this methodology accurately reflects an appropriate systems capacity charge. Capacity charges for the sanitary sewer enterprise fund are established based on the buy-in methodology. This method establishes rates based on the replacement cost of system infrastructure less depreciation and is appropriate when the capital investment is not principally driven by growth. As the capital needs in sewers are defined primarily by the wet weather management plan and by rehabilitation and replacement of the existing system, the buy-in methodology is appropriate for sewers. This methodology results in sewer capacity charges that are fair and equitable.
FISCAL IMPACT: Capacity charges recommended will result in a reduction in revenue of $2.8 million within the water enterprise fund and an increase in revenue of $2.5 million within the sanitary enterprise fund.
Title
To amend Sections 1105.17 and 1147.17 of the Columbus City Codes, 1959, by modifying the Systems Capacity Charges for the Division of Water and the Division of Sewerage and Drainage; and to repeal the existing sections being amended.
Body
WHEREAS, it is necessary to modify the capacity fees for ...
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