Explanation
BACKGROUND:
The proposed rate configuration for 2008 recognizes that water utility charges disproportionately effect lower income groups and continues a Low Income Discount program that discounts participant's water commodity portion of their quarterly bill by 15%.
Adjustments in rates result in a typical inside city residential water rate increase of 18%. When a sanitary sewer increase of 10% and a Stormwater increase of 5% are considered the overall impact on a typical residential customer in the City of Columbus is 12.55%.
The requested rate increase is 4% higher than anticipated last year for the year 2008. This increase is a direct result of an increase in the estimated debt service expense of building the upground reservoir project. Additionally, reorganization of the department has returned customer service operations to the Water Enterprise. This has shifted associated costs from the Sanitary, Stormwater and Electricity enterprises back to the Water Enterprise. The reorganization has reduced anticipated rate increases for sanitary sewer and stormwater rates. Water revenues for systems capacity charges are also lower than anticipated in 2007 due to lower than expected levels of construction. This reduces revenue forecasts and contributes to the higher rate increase needed in 2008.
FISCAL IMPACT: The Division of Power and Water expects an increase of $15,800,000 in water sales revenue.
Title
To amend the Columbus City Codes, 1959, effective January 1, 2008, as it relates to water rates for customers of the Division of Power and Water.
Body
WHEREAS, it is necessary to establish new water services rates, effective January 1, 2008, for water service provided by the City of Columbus in order to recover the cost of rendering said water services for the calendar year 2007; and
WHEREAS, the City of Columbus, Department of Public Utilities Division of Power and Water requests an eighteen percent (18%) in...
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