Explanation
Background: This ordinance authorizes an increase in water rates effective January 1, 2009 for the Division of Power and Water.
The proposed rate configuration for 2009 recognizes that water and sewer charges disproportionately effect lower income groups and increases the Low Income Discount program that discounts participant's sewer commodity portion of their quarterly bill from 15% to 20%. This increase in the discount rate will result in an overall rate reduction of -1.88% for a typical inside city customer. This legislation also eliminates receipt of the Homestead Exemption as a qualifier for receiving the Low Income Discount. Qualifying for Homestead Exemption is currently based on age and/or disability. Income was dropped as a qualifier by the State of Ohio and Franklin County in 2007.
Requested adjustments in rates result in a typical inside city residential water rate increase of 8.5%. When a sewer increase of 6% and a Stormwater increase of 9% are considered the overall impact on a typical residential customer in the City of Columbus is 7.11% and for an outside city residential customer 7.13%.
Fiscal Impact: The Division of Power and Water expects an increase of $8,460,000 in water sales revenue.
Title
To amend Chapter 1105 of the Columbus City Codes, 1959, to enact new water rates for the year beginning January 1, 2009, and to repeal the existing Sections being amended.
Body
WHEREAS, it is necessary to establish new water services rates, effective January 1, 2009, for water service provided by the City of Columbus in order to recover the cost of rendering said water services; and
WHEREAS, the City of Columbus, Department of Public Utilities Division of Power and Water requests an eight and one half percent (8.5%) increase in water rates for 2009 to pay for necessary ongoing operations and needed improvements; and
WHEREAS, City Council recognizes that increased water rates disproportionately imp...
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