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Date
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February 25, 2008
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Agenda
Item No. 45 Roll
Call No. 08- Communication No. 08-104 Submitted by: Allen McKinley, Finance Director |
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AGENDA HEADING:
Amending the ordinance regarding
the sanitary sewer user fees for Wastewater Collection and Treatment Services
SYNOPSIS:
Revisions
to Chapter 118 Utilities, Division 4. Rentals (Charges for Wastewater Collection
and Treatment Services) approving sanitary sewer rate increases of 6% effective
on July 1, 2008; July 1, 2009; and July 1, 2010.
FISCAL IMPACT:
The proposed
sewer rate changes are projected to provide three annual revenue increases of
6% to the Des Moines Sanitary Sewer System beginning July 1, 2008. Proposed rates and estimated annual revenue
increases follow:
Current
Rates Proposed Rates Increased Revenue
Customer Service
Charge $4.40 $4.40
Volume Charge $3.74 $3.96 (7/1/08) $1,452,000
(per 1,000
gallons $4.20 (7/1/09) $1,568,160
of billed water
usage)
$4.45 (7/1/10) $1,662,250
ADDITIONAL INFORMATION:
At the October
29, 2007 Council workshop, staff presented an update on the status of
operations and capital improvement plans related to the sanitary sewer
system. At that time, staff indicated
there would be a need for fee increases in the near future to provide for
increasing operating and maintenance expenses, maintaining the City’s financial
commitments related to outstanding sewer revenue bonds, and financing
additional capital projects including those necessary to meet the requirement
to separate combined sewers. At the January 4, 2008 Council workshop there was
a request for staff to update the financial projections of the sanitary sewer
system and make recommendations on rate increases for the near future. At the February 4, 2008 Council workshop,
staff presented updated financial projections and recommended three annual fee
increases of 6% beginning July 1, 2008.
PREVIOUS COUNCIL ACTION(S):
Date: April 25, 2005
Roll Call Number: 05-1006
Action: Amending
Chapter 118 of the Municipal Code regarding sanitary sewer fees. Moved by Vlassis that this ordinance do now
pass, #14,434.
Motion Carried 6-1. Nays: Brooks.
BOARD/COMMISSION ACTION(S): NONE
ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:
Second and third
readings of the ordinance.