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Home My WebLink About11-110REVISED MARCH 8, 2011 FIRST READING (CARRIED PURPOSE 10111 MAN I Ill III :yj 11 -110 ORDINANCE LOST LAID OVER WITHDRAWN ) ESTABLISH REVISED SEWER USE CHARGES SEWER UTILITY A GENERAL ORDINANCE OF THE CITY OF OSHKOSH AMENDING SECTION 24 -6.5 OF CHAPTER 22 OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO WASTEWATER SERVICE CHARGES The Common Council of the City of Oshkosh does ordain as follows: SECTION 1. That Section 24- 6.5(E)(1) of the Oshkosh Municipal Code pertaining only to the Wastewater Service Charges, Domestic Sewage Customers (formerly known as category A sewage) is repealed and recreated to read as follows: Domestic Sewage Customers (formerly Category A Sewage): (BOD <250 mg /1, TSS <250 mg /1, Phos <10 mg /1, NH -N< 25 mg /1) Quarterly Facilities Charge: Meter Size 5/8 or 3 /4" 1 1-1/4" 1 , / „ 2" 2-1/2" 3" 4" 6" 8" 10" 12" Volume Charge: (Based on volume) Rate $17.60 $28.60 $36.30 $45.10 $66.00 $96.80 $114.40 $182.60 $354.20 $559.90 $833.80 $1,107.70 $2.99 per 100 cu. ft. Unmetered Customers: Fixed Quarterly Charge (based on 15 ccF/quarter) $62.45 MARCH 8, 2011 11 -110 ORDINANCE FIRST READING CONT'D Special Charges: Meter Reading & Billing Charge for non sewer deduct meters $5.00 per billing period Service Initiation Fee for meter well (sewer -only) customers: Physical meter readings & billing Non - physical meter reading & billing Same as Water Utility Same as Water Utility SECTION 2. That Section 24- 6.5(E)(3) of the Oshkosh Municipal Code pertaining only to the Wastewater Service Charges, Non - Domestic Sewage Customers (formerly known as category B sewage), is repealed and recreated to read as follows: Non - Domestic Sewage Customers (formerly Category B Sewage): (BOD >250 mg /1, TSS >250 mg /1, Phos >10 mg /1, NH -N> 25 mg /1) Quarterly Facilities Charge: Volume Charge: Surcharge per lb. Over Domestic Strength Sewage Same as Domestic Sewage Customers Same as Domestic Sewage Customers Rate B.O.D. T.S.S. Phosphorus NH -N $0.340 per lb. $0.264 per lb. $3.192 per lb. $0.496 per lb. SECTION 3. That Section 24- 6.5(E)(4) of the Oshkosh Municipal Code pertaining to the Septic Haulers is repealed and recreated to read as follows: Tanker Truck (Septic) Haulers Fixed Charge (admin /testing) $10.00 per load Volume Charge: Holding Tank Waste $5.00 per thousand gallons (based on full capacity of truck, as reported on permit) Septic Tank Waste $68.00 per thousand gallons of waste • Porta Potty Waste $40.00 per thousand gallons of waste MARCH 8, 2011 11 -110 ORDINANCE FIRST READING CONT'D SECTION 4. This ordinance shall be in full force and effect from and after its passage and publication, and on and after April 1, 2011. SECTION 5. Publication Notice. Please take notice that the City of Oshkosh enacted ordinance #11 -110 A GENERAL ORDINANCE OF THE CITY OF OSHKOSH AMENDING SECTION 24 -6.5 OF CHAPTER 22 OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO WASTEWATER SERVICE CHARGES, on March 22, 2011. The ordinance adjusts the sewer use charges by 10 %. The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church Avenue and through the City's website at www.ci.oshkosh.wi.us Clerk's phone 920/236-5011. • Indicates Revision City of Oshkosh Finance Department 215 Church Ave., PO Box 1130 Oshkosh, WI 54903 -1130 (920) 236 -5005 (920) 236 -5039 FAX Of HKO-f H ON THE WATER MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Peggy Steeno, Finance Director DATE: March 8, 2011 RE: Establish Revised Sewer Use Charges BACKGROUND As discussed during the 2010 borrowing process, the 2011 Budget Workshops, and the 2011 borrowing kick -off, as well as included in the approved 2011 Budget, sewer rates need to be increased in 2011 to keep the Utility in a productive capacity, operating at a prudent level. ANALYSIS The increase is needed due to the following reasons: • Large Capital Improvement Programs in 2010 and beyond with regard to sewer infrastructure projects (major factor), • Funds needed to cover debt payments (i.e. Debt Coverage), • Current shortage of cash to meet obligations, • Decrease in usage from 2005 to the present, and • Moderate increase in expenses from 2008 to the present. As noted above, the major driver in the need for a rate increase is the additional debt the Utility has taken on to improve streets and the sewer system. The other items listed above certainly contribute, but to a lesser degree. Expenses from 2008 to 2010 have increased approximately 2.75% cumulatively. However, usage has decreased somewhat over this same time period, contributing to the need for the increase. FISCAL IMPACT In 2011, Utility revenues will increase by approximately $645,000 due to this increase. The effect of the increase on the average residential user is approximately $22.60 on an annual basis, which equates to 10 %. However, due to the April 1", 2011 implementation date, the actual increase in 2011 will be $16.95. RECOMMENDATION Staff recommends that Council pass this ordinance. Respectfully Submitted, P '- � A Peggy�no S&WO Finance Director Approved: *'� 4. ZW4�e Mark Rohloff City Manager FUND: SEWER UTILITY OPERATING EXPENSES Sanitary Sewer Pumping Stations Disposal Plant Solid Disposal Laboratory Maintenance General & Administrative Meter Reading Pretreatment Program TOTAL OPERATING EXPENSES DEPRECIATION TOTAL OPERATING EXPENSES LESS DEPRECIATION DEBT SERVICE Principal Payment on Debt Interest Expense TOTAL DEBT SERVICE TOTAL OPERATING EXPENSES LESS DEPRECIATION AND DEBT SERVICE CAPITAL ASSET PURCHASES NOT BONDED FOR TOTAL FUNDS NEEDED FROM REVENUES REVENUES Interest Income Miscellaneous Service Pretreatment Program Septic Haulers Late Charges REVENUE REQUIRED FROM SEWAGE SERVICE Sewage Service Revenue Projected RATE INCREASE Current Surplus /(Deficit) Cumulative Surplus / (Deficit) Assumptions: - Operating Expenses for 2012 -2015 increase at a rate of 2.5 %. - Debt Service estimates based on 2011 - 2015 CIP. 2011: BUDGET .::ESTIMATE: 2�►1�i 20 .:'ISTIMi�TE 1,175,400 1,204,800 1,234,900 574,000 588,400 603,100 3,131,400 3,209,700 3,289,900 826,700 847,400 868,600 100,800 103,300 105,900 831,800 852,600 873,900 706,100 723,800 741,900 469,300 481,000 493,000 100 100 100 7,815,600 8,011,100 8,211,300 2,266,100 2,322,800 2,380,900 5,549,500 5,688,300 5,830,400 3,115,500 1,044,800 3,340,000 1.229,500 3,822,300 1,532,600 4,160,300 4,569,500 5,354,900 9,709,800 10,257,800 11,185,300 135,000 135 135 9,844,800 10,392,800 11,320,300 55,000 55,000 55,000 10,000 15,000 15,000 77,000 78,000 78,000 13 0, 000 140,000 140,000 129,000 136,000 149,000 401,000 424,000 437,000 9,443,800 9,968,800 10,883,300 9,443,800 10,388J80 80 10,388,180 10% 10% 0% $0 $419,380 - $495,120 $0 $419,380 - $75,740 Notes: - Sewage Service consists of volume and fixed charges billed quarterly as well as Certified "B" Billings and Sanitary District Billings. - 2010 Estimated Sewage Service Revenue = $8,591,892. - 2011 Budgeted Revenues = $9,384,700, which is lower than revenue projected above ($9,443,800) due to actual 2010 year end revenues coming in less than estimated. - Rate Increase effective July 2007 of approx. 18.2% Comparison of Current & Proposed "User Charge" Rates Domestic sewage.Customers BOD <250 mg /I, TSS<250 mg /I, P <10 mg /I, NH3 -N<25 mg /1): Quarterly Facilities Charge: Volume Charge: Total Volume Based Charge Flat Rate for Unmetered Customers New Quarterly Charge Non- aQmestic :sewage: Gustorners (BOD >250 mg /I, TSS >250 mg /I, P >10 mg /I, NH3 -N >25 mg /1): Quarterly Facilities Charge: Volume Charge: Same as Domestic Sewage Customers Same as Domestic Sewage Customers Surcharge per lb. Over Current Proposed Domestic Strength Sewage: Rate Rate B.O.D. ($ /Ib.) Meter Size (in inches) $0.340 T.S.S. ($ /Ib.) 5/8 $16.00 $17.60 3/4 $16.00 $17.60 1 $26.00 $28.60 1 -1/4 $33.00 $36.30 1 -1/2 $41.00 $45.10 2 $60.00 $66.00 3 $104.00 $114.40 4 $166.00 $182.60 6 $322.00 $354.20 8 $509.00 $559.90 10 $758.00 $833.80 12 $1,007.00 $1,107.70 $ per 100 cubic feet $2.72 $2.99 (based on 15 CCF /qtr.) $57.00 $62.45 Non- aQmestic :sewage: Gustorners (BOD >250 mg /I, TSS >250 mg /I, P >10 mg /I, NH3 -N >25 mg /1): Quarterly Facilities Charge: Volume Charge: Same as Domestic Sewage Customers Same as Domestic Sewage Customers Surcharge per lb. Over Domestic Strength Sewage: B.O.D. ($ /Ib.) $0.309 $0.340 T.S.S. ($ /Ib.) $0.240 $0.264 Phosphorus ($/I b.) $2.902 $3.192 NH3 -N ($ /Ib.) $0.451 $0.496 TANKER TRUCK HAULERS Present Proposed Billing Charge (Admin. /Testing) $10.00 $10.00 Volume Charge: Holding Tank Waste BOD 600 mg/I, TSS 1800 mg /I, P 30 mg /I, NH3 -N 75 mg/I $ /Kgal $6.90 $5.00 Septic Waste BOD 9000 mg /I, TSS 18000 mg /I, P 300 mg/I, NH3 -N 150 mg/ $ /Kgal $68.00 $68.00 $PEC[Al� METER RIDING Present Proposed Reading / Billing of "Credit" Meter for "Water- Only" Usage $5.00 $5.00 Service Initiation Fee for meter well (Sewer -Only) Customers: Physical meter reading & Billing Same as Water Utility Non - physical meter reading & billing Same as Water Utility Quarterly Bill Comparison Different User Types /Sizes Meter Size (in.) Customer Type / Size Usage (CCF) Current Quarterly Bill Proposed Quarterly Bill Increase Amount Change 0.750 Small Residential 8 $37.76 $41.52 $3.76 10% 0.750 Average Residential 15 $56.80 $62.45 $5.65 10% 0.750 Residential- Family of Four 25 $84.00 $92.35 $8.35 10% 0.750 Large Residential 30 $97.60 $107.30 $9.70 10% 0.750 Small Commercial 34 $108.48 $119.26 $10.78 10% 1.000 Typical Commercial 67 $208.24 $228.93 $20.69 10% 1.500 Large Commercial 201 $587.72 $646.09 $58.37 10% 1.500 Very Large Commercial 500 $1,401.00 $1,540.10 $139.10 10% 2.000 Industrial 700 $1,964.00 $2,159.00 $195.00 10% 3.000 P/A - School 400 $1,192.00 $1,310.40 $118.40 10%