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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: May 28, 2015
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).
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, 2015 and 2016.
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, 1999 $3.01 $0.09 3.08%
July 1, 2000 $3.10 $0.09 2.99%
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%
*Applicable to residential customers.
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 4% 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, 2015 and 2016 for the availability and volume charges are as follows:
A typical household water customer consumes approximates 13 ccf per bi-monthly billing period. Currently, this equates to a bill, on average, of about $72.10. With the proposed rates, this will increase to an estimated $75.05 effective July 1, 2015 and $78.00 effective July 1, 2016.
The proposed rates would raise an estimated $1.2 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 $1.93 (or 8.0%) increase in the maximum allowable senior billing credit effective July 1, 2015. This billing credit adjustment would serve to address the rate increases on both July 1, 2015 and July 1, 2016.
IMPACT STATEMENT:
Not applicable.
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, 2015 and 2016.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
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.
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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, 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:
Section One: That Chapter 48, Section 48-57 entitled "Charges for Services" of the City of Aurora Code of Ordinances shall be amended as follows:
* * * * * * *
(c) All consumers shall be charged a basic fee for availability of water to a premise notwithstanding any usage of water. The basic fee rate charged shall be determined according to the size of the meter or water service pipe diameter installed. Effective for billings made subsequent to the dates indicated below, the basic availability charges shall be as follows:
|
Current 7/1/14 |
Effective 7/1/15 |
Effective 7/1/16 |
Availability Charge |
$11.65 |
$12.65 |
$13.65 |
These charges shall not be applicable for premises which the city has determined to not be available for occupancy and metering devices that have been removed from the premises at the request of the consumer or a determination by the city.
* * * * * * *
(e) In addition to the basic fee set forth hereinabove, the rates to be charged for water services and sewer services for various purposes shall be as follows, effective for billings made subsequent to the dates indicated below:
Class 1-Per one hundred (100) cubic feet:
Type of ServiceCurrent 7/1/14Effective 7/1/15Effective 7/1/16 |
|
|
|
Water Service |
|
|
|
Residential |
$3.75 |
$3.85 |
$3.95 |
Non-Residential |
$3.35 |
$3.40 |
$3.45 |
Sewer |
$0.90 |
$0.95 |
$1.00 |
Total |
|
|
|
Residential |
$4.65 |
$4.80 |
$4.95 |
Non-Residential |
$4.25 |
$4.35 |
$4.45 |
Class 2-Per one hundred (100) cubic feet:
The Class 1, Class 3, or Class 4 (as otherwise applicable) water service and sewer service rates set forth in this subsection (e) less a fifty (50) percent credit, but the total credit shall not exceed twenty-four dollars and sixteen cents ($24.16) per two-month billing period effective September 1, 2013.the following amounts:
|
Current 7/1/14 |
Effective 7/15/16 |
Discount Maximum |
$24.16 |
$26.09 |
Class 3-Per one hundred (100) cubic feet:
Type of Service |
Current 7/1/14 |
Effective 7/1/15 |
Effective 7/1/16 |
Water Service |
|
|
|
Residential |
$7.50 |
$7.70 |
$7.90 |
Non-Residential |
$6.70 |
$6.80 |
$6.90 |
Sewer |
$1.80 |
$1.90 |
$2.00 |
Total |
|
|
|
Residential |
$9.30 |
$9.60 |
$9.90 |
Non-Residential |
$8.50 |
$8.70 |
$8.90 |
Section Two: That this ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval.
Section Three: That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
Section Four: 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.
PASSED by the City Council of the City of Aurora, Illinois, on
AYES__________ NAYES___________ NOT VOTING ___________
APPROVED AND SIGNED by the Mayor of the City of Aurora, Illinois, on
______________________________
Mayor
ATTEST:
____________________________
City Clerk
City of Aurora
Law Department
44 East Downer Place
Aurora, IL 60507
(630) 256-3060