City of Alexandria, Virginia
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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 assume...
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