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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, CFO/City Treasurer
DATE: June 19, 2020
SUBJECT:
Deferral of the 2020 Water Rate Increase per Article II of Chapter 48 of the City of Aurora Code of Ordinances Entitled "Municipal Utility Services from July 1, 2020 to October 1, 2020.
PURPOSE:
In order to provide rate relief to Aurora water utility users this resolution will defer the increase already approved for Water Rates in 2020.
BACKGROUND:
The COVID 19 Pandemic has created numerous financial hardships for Aurora residents and businesses. The City has already taken steps to suspend water shutoffs. Staff recommends the deferral of the scheduled rate increase of approximately 5.0% (average bill going from $90.60 to $95.20).
DISCUSSION:
Rate increases are approved by the City Council every two years. As such no approval was needed to increase rates this July. As noted above the rate increase is approximately 5.0%. Due to the deferral of several capital projects in the Water Fund, it is financially able to incur the modest revenue loss from this temporary deferral. Staff is not recommending any longer deferral than 1 month at this time. Barring further Council action the rate increase will take effect October 1, 2020.
IMPACT STATEMENT:
This resolution will provide rate relief to Aurora water utility users and the Water Fund is financially able to absorb this deferral.
RECOMMENDATIONS:
Staff recommends that this resolution be passed to provide rate relief to Aurora water utility users.
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Deferring the implementation of the annual Water/Sewer rate increase as provided in Article II of Chapter 48 of the City of Aurora Code of Ordinances Entitled "Municipal Utility Service until October 1, 2020
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, The COVID 19 Pandemic has created economic hardships on the residents and businesses of the City of Aurora:
WHEREAS, The City Water Fund is financially able to defer the previously approved water rate increase for July 1, 2020 until October 1, 2020.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: The 2020 Water/Sewer rate increase as previously approved to effect July 1, 2020 is deferred until October 1, 2020.