Explanation
Background: This ordinance authorizes an increase in sanitary sewer service rates for the Division of Sewerage and Drainage.
The Department of Public Utilities entered into contract in 2005 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 increases in System Capacity Charges the overall increase in revenue to the Division of Sewerage is estimated to be 20%.
The proposed rate configuration for 2006 recognizes that sewer charges disproportionately effect lower income groups and establishes a Low Income Discount program that discounts participant's sewer commodity portion of their quarterly bill by 15%.
The proposed rate structure also establishes a charge related to each customers contribution to spikes in wastewater flow during periods of wet weather. Since increased impervious area corresponds to increased run-off during wet weather, a charge based upon impervious cover is proposed 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 will be assessed based on each property's impervious surface area. Each Equivalent Residential Unit (ERU) is based on the previously determined Stormwater ERU of 2000 sq ft. Residents are assigned one (1) 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 will be set to recover the debt service costs and other expense of all projects related to correcting...
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