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Home My WebLink About19. 15-534DECEMBER 8, 2015 15-534 RESOLUTION (CARRIED__7-0____ LOST________ LAID OVER________ WITHDRAWN_______) PURPOSE: APPROVAL OF FEE SCHEDULE FOR SEWER USE CHARGES INITIATED BY: SEWER UTILITY WHEREAS, the Wastewater Systems Ordinance, Chapter 24, of the Municipal Code provides for the adoption of a fee schedule for wastewater service charges. NOW, THEREFORE, BE IT RESOLVED that the attached Sewer Use Charges Fee Schedule is hereby adopted and shall be in full force and effect on and after January 1, 2016. Sewer Use Charges (Effective 1/1/2016) 2016 Proposed Domes[ic Sewera¢e Cusfomers Rates Quarterly Fixed Charge 5/8 $22.75 3/4 $22J5 I $40.17 125 $49.44 1.50 $64.89 2 $9290 3 $163.77 4 $26594 6 $516.03 8 $815J6 10 $1,217.46 12 $1,619.16 Volumetric Charge per 100 CU. FT. $421 Quartedy Fla[ chacge (Based Upon l6 CCF/Qtr $90.11 Non Domes[ic Customers Quarterly Facilities Charge Volumehic Rate Surcharge Rate BOD / Ib Surcharge Rate TSS / Ib Surcharge Rate Phosphoms / Ib Surcharge Rate NH3-N / Ib Hauled Wate Charees Septic Tank Rate per 1,000 gal. Holding Tank Rate per 1,000 gal. Port-a-Potty Ware Rate per 1,000 gal. Reading/ Billing of "CrediP' Me[[er for "Water Only" Usage Same as Dome[ic Cus[omers Same as Dometic Cus[omers $0.48 $0.43 $4.21 $L06 $78.25 $5.67 $46.58 $5.00 n OlMCQ /H orv .�e w<.ea TO: FROM: DATE: RE: City af osnkosn Finance Department 215 Church Ave., PO Box 1130 Osnkosn, WI 54903-1130 (9201 236-5080 19201 236-5039 FAX MEMORANDUM Honorable Mayor and Members of the Common Council Trena Larson, Finance Director December 3, 2015 Establish Revised Sewer Use Chazges BACKGROUND As discussed during the 2016 budget workshops sewer rates need to be increased in 2016 to keep the Utility in a productive capacity and operating at a prudent level. ANALYSIS The increase is neeAed due to the following reasons: . Declinin@/Flat usage from 2012 to the present, • Moderate increase in expenses from 2010 to the present, . Large Capital Improvement Program in 2016 and beyond with regard to sewer infras[ructure projects, and • Funds needed to meet bond covenant requirements with regazd to debt payments (i.e. Debt Coverage). As enumecated above, the approximate 10% [ate increase is necessazy to fund operations and debl service needs in 2016. FISCAL IMPACT If approved, the impact of the increase will be approximately $950,000. The effec[ of the increase on the averagc residential user is approxima[ely $30.00 on an annual basis, which equates to a 10.76% increase. Staff recommends that Council pass this ordioanee. Respectfully Submitted, �� Trena Larson Finance Director Approved: �r� Mazk Rohloff Ciry Manager Memo To: Members of the City of Oshkosh Common Council From: Jon C4ime�•on v Cc: Mark R�1�Ec}i' , T:��<� Larson, James Rabe, Ken Gabrielson Date: Subject: 12/2/2015 Recommended Sewer User Rates for 2016 We have completed the Sanitary Sewer User Rate Study Update for 2016. A 10% increase to revenues was projected in the long range Cash Flow and Debt Analysis that we completed for the City this fall. This increase to revenues was incorporated into the adopted budget for the Sewer Utility for 2016. The primary factors for increasing user rates in 2016 are: 1. To provide required coverage for Sewer Utility debt issued in 2015. 2. The planned issuance of approximately $13.72 million of sewer revenue bonds in 2016. 3. The continued decline in billable sewer consumption. City-wide billable sewer flows have declined approximately 10°Io since 2012. To accompany the increase to revenues in the adopted budget, a full cost of service sewer rate study was performed to identify detailed user rates for 2016 for all customer classes. The last cost of service sewer rate study was completed in 2013. The purpose of a cost of service study is to calculate user rates such that they are fair and equitable to all customer classes, and to ensure that rates are based upon the principles of cost causation; i.e., those who cause the costs pay the costs. Enclosed please find a few key worksheets from the Rate Study showing the proposed user rates for 2016, as well as the impact the user rates will have on sample customers. A graph showing total historical sewer usage, and rate comparison worksheet comparing sewer user rates in Oshkosh to other municipalities is also enclosed. E H L E RS N21 W23350 Ridgeview Parkway W, Ste 100 Waukesha, WI 53188-1015 LEADERS IN PUBLIC FINANCE Phone: 262-785-1520 Fax: 262-785-1810 N � �0 � � � N O Q O a` N > � i N .� W � O C � N 'i lC Q. E O V N o � L U N � C N L U a � � � O a c� N O [[ �.. 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ER E!T r N C� � 00 00 N r Ln � � � � � r � O � C� O E� E� r Efl r � � ��v� � �� r N r N CO r N M M M C7 (� � r O OD (`7 C+� O N � O ln r N� � O O(� I� r N M C`') I� C'') r�� (� �(h 00 r O� O �� f� O� I� cn r r N � f� N O Ch � �� O �� r ln r j� � Cb V N N N U m � c� � � 0 � � U � � � � � � � U U U c c c c ` ` ` � � � N N N •� •� •� "a "� "a "a E E E �, �, f„ U U U '�n 'rn '�n '�n E E E � � � � � � �COCOCOC UUU ��-� �� r 0 N N N r � L � L L.LI � � � � c� a a� � � 3 0 � W 3 a, � a� � � � •� � � � s � 0 � s � O �� •� V � � � f0 L.L = U ap U � 3 0 0 � � I 0 � Q � � 0 � � � � � � Q � � � � � O O O O O O ia l O O M M N N �--I r-I O O Ol N N N N N N N N r-I � � 0 N � � 0 N � r-I O N M � 0 N N � 0 N � � 0 N \ N \ N r-I � L � � w � � � v L � � � L d City of Oshkosh Comparison of Sewer User Rates 4uarterly Volume Charge Municipality Population Connection Charge $/CCF North Fond Du Lac 5,027 $53.41 $7.41 Menomonee Falls 35,974 $69.45 $4.31 Omro 3,542 $37.30 $5.93 Waupaca 6,018 $72.63 $2.76 Brookfield 37,982 $67.00 $2.96 Whitewater 15,040 $28.65 $4.91 Fond Du Lac 42,917 $37.50 $3.91 Wisconsin Dells 2,712 $21.00 $4.83 Oshkosh - Proposed 66,621 $22.75 $4.21 Clintonville 4,481 $33.00 $3.10 Stevens Point 26,658 $29.50 $3.31 Oshkosh - Current 66,621 $22.50 $3.65 West Allis 60,624 $45.98 $1.75 Waukesha 71,489 $12.96 $4.10 Green Bay 104,891 $29.75 $2.62 Janesville 64,009 $40.80 $1.74 Madison 245,691 $36.90 $1.87 New London 7,216 $2.40 $4.37 Beloit 36,881 $18.90 $2.95 Marinette 10,897 $30.00 $1.90 Racine 78,065 $20.90 $2.33 Wausau 39,302 $17.00 $2.59 Sheboygan 48,775 $25.64 $1.69 Eau Claire 67,684 $5.40 $3.05 Milwaukee 599,642 $18.72 $1.74 Appleton 73,971 $13.50 $2.04 Kenosha 99,894 $7.44 $1.99 LaCrosse 52,440 $13.50 $1.14 Quarterly Bill 13 CCF $149.77 $125.46 $114.41 $108.51 $105.51 $92.54 $88.33 $83.82 $77.48 $73.35 $72.53 $69.95 $68.73 $66.25 $63.81 $63.42 $61.21 $59.19 $57.25 $54.70 $51.19 $50.67 $47.61 $45.05 $41.34 $40.02 $33.31 $28.32 Prepared by Ehlers 12/2/2015