File #: 14-4970    Name: Increase fees for In-home day care facilities
Type: Ordinance Status: Agenda Ready
File created: 2/9/2016 In control: City Council Public Hearing
On agenda: 5/14/2016 Final action:
Title: Public Hearing, Second Reading, and Final Passage of an Ordinance to Bring the Sewer Line Maintenance Charge Set Forth Therein into Conformity with the Previously Adopted Resolution Setting the Fee at $1.40 per 1,000 Gallons of Water Supplied. [ROLL-CALL VOTE]
Attachments: 1. 14-4970_Ordinance Cover5-6-26.pdf, 2. 14-4970_Ordinance 5-6-26.pdf, 3. 14-4970_After Items

 City of Alexandria, Virginia

________________

 

MEMORANDUM

 

 

DATE:                                          MAY 14, 2016

 

TO:                                          THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

 

FROM:                     MARK B. JINKS, CITY MANAGER /s/

 

DOCKET TITLE:

TITLE

Public Hearing, Second Reading, and Final Passage of an Ordinance to Bring the Sewer Line Maintenance Charge Set Forth Therein into Conformity with the Previously Adopted Resolution Setting the Fee at $1.40 per 1,000 Gallons of Water Supplied. [ROLL-CALL VOTE]

BODY

 

 

ISSUE:  Consideration of an ordinance to increase the sanitary sewer line maintenance charge from $1.25 to $1.40 per 1,000 gallons of water.

 

RECOMMENDATION:  That City Council hold a public hearing and pass the proposed ordinance on Saturday, May 14, 2016. The ordinance will be effective July 1, 2016.

 

BACKGROUND:  The sanitary sewer line maintenance charge (i.e. usage fee) was established to assist in recovering the costs of maintaining, inspecting and improving public sanitary sewer facilities in the City. During the FY 2004 budget process, staff outlined a proposal to begin a multi-year plan to increase the City’s sanitary sewer fee so that the sanitary sewer costs are fully recovered from fees and other outside sources. Since then, the fees continue to cover the full costs, with the last increase in fees in FY 2012, when the fee increased from $1.00 to $1.25 per 1,000 gallons used.

 

DISCUSSION:  The balanced plan proposes a 12% rate increase in FY 2017 on the Sewer Line Maintenance Fee to $1.40 per 1,000 gallons; the Sewer Connection Fee automatically increases with CPI. The plan also projects in FY 2018 a 20% rate increase to $1.68 per 1,000 gallons on maintenance fees to prepare for several major capital projects that will be initiated in FY 2018. The proposed FY 2017-FY 2026 plan reflects an estimated $10.9 million in revenues in FY 2017 based on staff review of revenues proposed from the Sewer Line Maintenance Fee and the Sewer Connection Fee. The FY 2017 proposal also assumes $10.9 million in expenditures for FY 2017, including $6.5 million in operating costs and $1.9 million in capital projects. The remainder of expenditures in FY 2017 includes $2.6 million in debt service, with no additional debt added in FY 2017.

 

The typical monthly sanitary sewer bill paid to Alexandria Renew Enterprises is approximately $45 per month. Currently, the City’s portion of that monthly bill is approximately $5.66 per month or approximately $67.89 per year. The proposed increase will cost the typical household approximately $0.68 per month or approximately $8.15 per year on the City’s portion of the sanitary sewer bill.

 

FISCAL IMPACT:  The proposed rate increase in the Sewer Line Maintenance charge will generate an estimated $770,400 in additional revenue, for a total of $6.8 million which would be available annually to fund all City-related sanitary sewer operating and capital costs. The funding and rate increase plan for FY 2018 and beyond would be subject to change, as changes to the City’s sanitary sewer capital and operating needs, federal and state environmental requirements change.

 

ATTACHMENTS:

1.                     Ordinance Cover

2.                     Ordinance

 

 

STAFF:

Emily Baker, P.E., Deputy City Manager

Morgan Routt, Director, Office of Management & Budget

Yon Lambert, AICP, Director, T&ES

William Skrabak, Deputy Director, T&ES