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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: May 29, 2019
SUBJECT:
An Ordinance Amending Article II of Chapter 48 of the City of Aurora Code of Ordinances Entitled “Municipal Utility Service” (Water and Sewer Rates) and establishing rates for said services.
PURPOSE:
To obtain the City Council’s approval of a proposed ordinance that would adjust the city’s rates for water and sewer service on July 1, 2019 and 2020.
BACKGROUND:
For the past several years, the city has adhered to the practice of adjusting its rates for water and sewer service moderately each year rather than imposing larger increases at irregular intervals. A history of the city’s Class 1 water and sewer service rates per 100 cubic feet of water consumed (i.e., the consumption charge rate) since July 1, 1999 is shown below.
Amount of Percentage
Effective Date Rate Increase Increase
July 1, 2001 $3.19 $0.09 2.90%
July 1, 2002 $3.29 $0.10 3.13%
July 1, 2003 $3.35 $0.06 1.82%
July 1, 2004 $3.43 $0.08 2.39%
December 1, 2005 $3.50 $0.07 2.04%
July 1, 2006 $3.60 $0.10 2.86%
July 1, 2007 $3.68 $0.08 2.22%
July 1, 2008 $3.75 $0.07 1.90%
October 1, 2009 $3.86 $0.11 2.93%
July 1, 2010 $3.98 $0.12 3.11%
July 1, 2011* $4.17 $0.19 4.77%
July 1, 2012* $4.37 $0.20 4.80%
September 1, 2013* $4.40 $0.03 0.69%
July 1, 2014* $4.65 $0.25 5.68%
July 1, 2015* $4.80 $0.15 3.13%
July 1, 2016* $4.95 $0.15 3.03%
July 1, 2017* $5.05 $0.10 3.13%
July 1, 2018* $5.15 $0.10 3.03%
*Applicable to residential customers.
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DISCUSSION:
In order to address the anticipated operating and capital needs of the water and sewer system, the Water & Sewer Fund requires an aggregate revenue increase of about 6% in each of the next two years. The current water rate structure includes a basic fixed fee (availability charge) and a water use/consumption rate (volume rate). The current rates and proposed rates as of July 1, 2019 and 2020 for the availability and volume charges are as follows:
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Current |
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Proposed |
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Proposed |
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Rate Type |
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7/1/18 |
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7/1/19 |
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7/1/20 |
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Availability Charge |
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$19.05 |
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$21.05 |
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$23.05 |
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Class 1 Volume Charge |
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Water Service |
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Residential |
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$4.05 |
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$4.15 |
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$4.25 |
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Non-Residential |
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$3.55 |
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$3.80 |
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$4.05 |
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Sewer Service |
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$1.10 |
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$1.20 |
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$1.30 |
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Total |
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Residential |
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$5.15 |
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$5.35 |
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$5.55 |
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Non-Residential |
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$4.65 |
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$5.00 |
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$5.35 |
A typical household water customer consumes approximates 13 ccf per bi-monthly billing period. Currently, this equates to a bill, on average, of about $86.00. With the proposed rates, this will increase to an estimated $90.60 effective July 1, 2019 and $95.20 effective July 1, 2020.
The proposed rates would raise an estimated $2.0. million additional revenue in each of the next two 12-month rate periods.
To mitigate the impact of the rate increases on our senior citizens, the proposed ordinance would provide for a $2.87 (or 10.0%) increase in the maximum allowable senior billing credit effective July 1, 2019. This billing credit adjustment would serve to address the rate increases on both July 1, 2019 and July 1, 2020.
Consistent with the City Council's efforts to remove "temporary" information such as water and sewer rates from the City Code, this ordinance will adopt the water and sewer rates by exhibit (which will not be codified) and remove all previously established water and sewer rates from the Code altogether.
IMPACT STATEMENT:
Approval of this ordinance will provide for the equitable increase in water and sewer rates to properly fund water and sewer operations and capital/infrastructure replacement programs.
RECOMMENDATIONS:
That the City Council approve the proposed, attached ordinance providing for adjustments to the city’s rates for water and sewer service on July 1, 2019 and 2020.
cc: Finance Committee
Alex Alexandrou, Chief Management Officer
Richard Veenstra, Corporation Counsel
Wendy McCambridge, City Clerk
Kenneth D. Schroth, Director of Public Works
David Schumacher, Superintendent of Water Production
Eric Schoeny, Superintendent of Water and Sewer Maintenance
Richard A. Munson, Engineer
Beatrice Torres, Assistant Director of Finance
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending Chapter 48, Article II, Section 48-57 Entitled "Charges for Services" Of the Aurora Code of Ordinances Entitled “Municipal Utility Service” (Water and Sewer Rates) and establishing rates for said services.
body
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, in furtherance of its home rule powers, it is necessary and desirable for the City of Aurora to amend from time to time its ordinances regulating water and sewer rates and usage.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that Chapter 48, Article II, Section 48-57 of the Aurora Code of Ordinances shall be amended as set forth in Exhibit A and further
BE IT ORDAINED, that the rates for water and sewer services set forth in Exhibit B shall be and hereby are established and shall take effect as described therein; and further
BE IT ORDAINED, that this ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval; and further
BE IT ORDAINED, that all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict; and further
BE IT ORDAINED, that any Section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining Sections or provisions which shall remain in full force and effect thereafter.