Explanation
Background: This ordinance authorizes an increase in sanitary sewer service rates for the Division of Sewerage and Drainage.
The proposed rate configuration for 2008 recognizes that sewer charges disproportionately effect lower income groups and continues a Low Income Discount program that discounts participant's sewer commodity portion of their quarterly bill by 15%.
Requested adjustments in rates result in a typical inside city residential sanitary sewer rate increase of 10%. When a water increase of 18% and a Stormwater increase of 5% are considered the overall impact on a typical residential customer in the City of Columbus is 12.55% and for an outside city residential customer 13.47%.
The proposed rate structure also includes a charge related to each customers contribution to wastewater flow during periods of wet weather. Since wastewater flow during wet weather directly corresponds to impervious area, rates include a charge 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 is assessed based on each property's measured impervious surface area. Each Equivalent Residential Unit (ERU) is based on the previously determined Stormwater ERU of 2000 sq ft. Residents are charged at one 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 is calculated to recover the debt service costs and other expense of all projects related to correcting wet weather overflows. It is also established that no customer will be charged for more than 1000 ERUs. This charge for 2008 is $2.57 per ERU inside city and $1.53 per ERU for outside city customers.
Fiscal Impact: These rate increases will generate approximately $18.7 million in additional revenue in 2008.
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