Explanation
BACKGROUND:
The Department of Public Utilities entered into contract in 2006 for development of updated rate models for the Division of Sewerage and Drainage and the Division of Water. This was the first major review and rewriting of rate models since 1993. The new 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. Combined with modifications in System Capacity Charges the overall increase in revenue to the Division of Water is estimated to be 9%.
The proposed rate configuration for 2006 recognizes that water utility charges disproportionately effect lower income groups and establishes a Low Income Discount program that discounts participant's water commodity portion of their quarterly bill by 15%.
The rate structure proposed also recognizes that cost of service rates establish that residential water rates have for some time resulted in those customers bearing an unfair proportion of the total revenue burden. Adjustments in rates result in a typical inside city residential water rate increase of 1.83%. When a sanitary sewer increase of 17.2% and a Stormwater increase of 5% are considered the overall impact on a typical residential customer in the City of Columbus is 10.14%.
FISCAL IMPACT: The Division of Water expects an increase of 9% in overall revenue.
Title
To amend Chapter 1105 of the Columbus City Codes, 1959, as it relates to 2005 water rates for customers of the Division of Water by enacting new Sections 1105.041 and 1105.21 and amending Sections 1105.04, 1105.05, and 1105.055; and to repeal all existing sections being amended.
Body
WHEREAS, it is necessary to establish new water services rates, effective January 1, 2006, for water service provided by the City of Columbus in order to recover the cost of rendering said water servic...
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