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Establishing Water Rates under City of Dubuque Code of Ordinances for Fiscal Year 2024Copyrighted March 23, 2023 City of Dubuque Special Meeting Action Items # 02. IT E M T I T L E:Establishing Water Rates under City of Dubuque Code of Ordinances for F iscal Year 2024 S UM M ARY:OR D I N A N C E Establishing City of Dubuque Code of Ordinances Title 13 Public Utilities, Chapter 1 Water Use and Service, Article C Rates, Section 13-1C-1(A) Fixing Water Rates for Residential, Commercial, Industrial, and all other uses O RD I NANC E E stablishing the City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Water Use and S ervice, A rticle C Rates Section 13-1C-2 F ixing Water Rates for F ire S prinkler S ervice S UG G E S T E D D I S P O S I T I O N: Suggested Disposition: Receive and F ile; Motion B; Motion A AT TAC H ME N TS: Description Type W ater Rates Comparison MV M Memo Staff Memo W ater Utility Rate Comparison F Y23 to F Y24 Supporting Documentation F Y24 Ordinance W ater Use and Service Rates Ordinance Updated W ater Fire Sprinkler Rate Comparison FY23 to F Y24_Uploaded 3.23.23 Supporting Documentation W ater Fire Sprinkler Rate Comparison FY23 to FY24 Supporting Documentation F Y24 Sprinkler Service Ordinance Ordinance TO: Michael C. Van Milligen, City Manager FROM: Christopher Lester, Water Department Manager SUBJECT: Establishing Water Rates under City of Dubuque Code of Ordinances Section Title 13 Public Utilities Chapter 1 Article C – Rates, Section 13-1C-1(a) Residential, Commercial, Industrial and other uses; and Section 13-1C-2 Fire Sprinkler Service DATE: February 28, 2023 INRODUCTION The purpose of this memorandum is to provide two ordinances for review and approval. These ordinances establish the FY24 City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Article C, Section 13-1C-1(a) Fixing Water Rates for Residential and Industrial Use and all other uses; and Section 13-1C Fixing Water Rates for Fire Sprinkler Service. DISCUSSION It is recommended in the Water Department’s budget request for FY24, that an 8% rate increase be implemented. It is also recommended that the Minimum Monthly Water Charge be increased to $8.93, which also reflects an 8% rate increase. Proposed and approved rate structures of comparable Iowa communities with lime softening treatment similar to Dubuque, are compared in the following table. The calculation is based on the average residential usage of 6,000 gallons per month. Rank, Highest to Lowest City Proposed FY24 Water Cost for 6,000 Gallons 1 West Des Moines $ 42.94 2 Des Moines $ 40.94 3 Cedar Rapids $ 39.54 4 Ames $ 37.52 5 Iowa City $ 36.41 6 Dubuque $ 35.82 7 Council Bluffs $ 30.88 The proposed rate increase of 8% would place Dubuque as having the second lowest water rate. The highest rate (West Des Moines) is 19.88% higher than Dubuque’s rate. The average without Dubuque is 5.31% higher than Dubuque’s proposed rate. RECOMMENDATION It is recommended the attached proposed ordinances be submitted to the City Council for adoption during the FY24 Budget Hearings with an effective date of July 1, 2023. cc: Crenna Brumwell, City Attorney Jenny Larson, Director of Finance and Budget Adrienne Breitfelder, City Clerk Randy Gehl, Public Information Officer File 2 City of Dubuque Water Utility Rate Comparison FY2023 to FY2024 Rates based on units of one-hundred cubic feet (748 gallons) Monthly FY 23 FY 24 Consumption 5.00% 8.00% First 30 $ 4.17 $ 4.50 Next 120 $ 3.39 $ 3.66 Next 350 $ 3.15 $ 3.40 Next 500 $ 2.78 $ 3.00 Over 1,000 $ 2.47 $ 2.67 ACTUAL PROPOSED Monthly FY 23 FY 24 Consumption 5.00% 8.00% First 22,440 $ 0.00553 $ 0.00597 Next 89,760 $ 0.00454 $ 0.00490 Next 261,800 $ 0.00423 $ 0.00457 Next 374,000 $ 0.00373 $ 0.00403 Over 748,000 $ 0.00327 $ 0.00353 Rates shall be subject to the following minimum monthly charges according to the size of the meter: ACTUAL PROPOSED Meter Cubic FY 23 FY 24 Size Feet Gallons 5.00% 8.00% 5/8 2 1,496 $ 8.27 $ 8.93 3/4 5 3,740 $ 20.68 $ 22.33 1 8 5,984 $ 33.09 $ 35.72 1 1/2 26 19,448 $ 107.55 $ 116.10 2 46 34,408 $ 178.43 $ 192.61 3 106 79,288 $ 382.18 $ 412.52 4 168 125,664 $ 588.56 $ 635.32 6 368 275,264 $ 1,221.36 $ 1,318.99 8 625 467,500 $ 1,987.77 $ 2,147.02 For users outside of city limits, an additional charge equal to 50% of the above rates will be made. An $8.93 minimum monthly charge shall be assessed for meters not in service, this reflects the 8% rate increase. Prepared by: Christopher Lester Water Department Manager, 901 Hawthorn St Dubuque IA 52001 (563) 589 4290 Return to Adrienne N. Breiffelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 11-23 ESTABLISHING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES, SECTION 13-1C-1(A) FIXING WATER RATES FOR RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND ALL OTHER USES NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-1C-1(A) of the City of Dubuque Code of Ordinances, is hereby unchanged, and shall read as follows: Section 13-1C-1A: Residential, Commercial, Industrial and All Other Uses, A. Rates Established: The rates to be charged for water for residential, commercial, industrial and all other uses and purposes by any person, firm or corporation within the city shall be based on units of one hundred cubic feet (748 gallons) or per gallon as follows: Monthly Consumption (in Hundreds of Cubic Feet) First 30 Next 120 Next 350 Next 500 Over 1,000 Monthly Consumption (in Gallons) First 22,440 Next 89,760 Next 261,800 Next 374,000 Over 748,000 Rates shall be subject to the following the meter: Charge per Hundred Cubic Feet $4.50 $3.66 $3.40 $3.00 $2.67 Charge per Gallon $0.00597 $0.00490 $0.00457 $0.00403 $0.00353 minimum monthly charge according to the size of Meter Size Monthly Consumption Inches (In Hundreds of Cubic Feet) 5/8 2 3/4 5 1 1 /2 26 2 46 3 106 4 168 Monthly Consumption (In Gallons) 1,496 3,740 5,984 19,448 34,408 79,288 125,664 Minimum Charae $8.93 $22.33 $35.72 $116.10 $192.61 $412.52 $635.32 6 368 275,264 $1,318.99 8 625 467,500 $2,147.02 A property owner shall pay a $50.00 disconnect fee for water service that is disconnected by the city for a meter not in service. When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $50.00 disconnect fee. A $50.00 service call fee shall be changed to property owners or tenant account for those service calls that are determined to be related to customer negligence. A $8.93 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2023. Passed, approved and adopted this 23'd day of March, 2023. Attest: 0� A °Miv'7 Adrienne Breiffelder, City Clerk City of Dubuque Fire Sprinkler Rate Comparison FY2023 to FY2024 Actual Proposed FY23 FY24 5.00% 8.00% Up to 200 (minimum) $ 25.38 $ 27.41 200-299 $ 30.47 $ 32.91 300-399 $ 35.48 $ 38.32 400-599 $ 40.61 $ 43.86 600-799 $ 45.64 $ 49.29 800-999 $ 50.75 $ 54.81 1,000 - 1,199 $ 55.84 $ 60.31 1,200 - 1,399 $ 60.86 $ 65.73 1,400 - 1,599 $ 65.94 $ 71.22 1,600 - 1,799 $ 71.03 $ 76.71 1,800 - 1,999 $ 76.06 $ 82.14 2,000 - 2,199 $ 81.15 $ 87.64 2,200 - 2,399 $ 86.23 $ 93.13 2,400 - 2,599 $ 91.31 $ 98.61 2,600 - 2,799 $ 96.38 $ 104.09 2,800 - 2,900 $ 101.58 $ 109.71 3,000 - 3,499 $ 106.51 $ 115.03 Over 3,500* $ 5.06 $ 5.46 *(for each additional 500 heads or fraction thereof) City of Dubuque Water Utility Rate Comparison FY2023 to FY2024 Rates based on units of one-hundred cubic feet (748 gallons) Monthly FY 23 FY 24 Consumption 5.00% 8.00% First 30 $ 4.17 $ 4.50 Next 120 $ 3.39 $ 3.66 Next 350 $ 3.15 $ 3.40 Next 500 $ 2.78 $ 3.00 Over 1,000 $ 2.47 $ 2.67 ACTUAL PROPOSED Monthly FY 23 FY 24 Consumption 5.00% 8.00% First 22,440 $ 0.00553 $ 0.00597 Next 89,760 $ 0.00454 $ 0.00490 Next 261,800 $ 0.00423 $ 0.00457 Next 374,000 $ 0.00373 $ 0.00403 Over 748,000 $ 0.00327 $ 0.00353 Rates shall be subject to the following minimum monthly charges according to the size of the meter: ACTUAL PROPOSED Meter Cubic FY 23 FY 24 Size Feet Gallons 5.00% 8.00% 5/8 2 1,496 $ 8.27 $ 8.93 3/4 5 3,740 $ 20.68 $ 22.33 1 8 5,984 $ 33.09 $ 35.72 1 1/2 26 19,448 $ 107.55 $ 116.10 2 46 34,408 $ 178.43 $ 192.61 3 106 79,288 $ 382.18 $ 412.52 4 168 125,664 $ 588.56 $ 635.32 6 368 275,264 $ 1,221.36 $ 1,318.99 8 625 467,500 $ 1,987.77 $ 2,147.02 For users outside of city limits, an additional charge equal to 50% of the above rates will be made. An $8.93 minimum monthly charge shall be assessed for meters not in service, this reflects the 8% rate increase. Prepared bV: Christopher Lester Water Department Manager, 901 Hawthorn St Dubuque IA 52001 (563) 589 4290 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 12-23 ESTABLISHING THE CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES SECTION 13-1C-2 FIXING WATER RATES FOR FIRE SPRINKLER SERVICE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-1 C-2 of the City of Dubuque Code of Ordinances is hereby unchanged, and shall read as follows: Section 13-1 C-2: Fire Sprinkler Service. Customers who have fire sprinkler service shall be billed for this service on a monthly basis. The monthly charge shall be as follows: CURRENT MONTHLY NUMBER OF HEADS CHARGES Up to 200 (minimum) ..................... $27.41 200-299.................................... $32.91 300-399.................................... $38.32 400-599.................................... $43.86 600-799.................................... $49.29 800 -999.................................... $54.81 1,000 - 1,199.................................. $60.31 1,200-1,399.................................. $65.73 1,400 - 1,599.................................. $71.22 1,600 - 1,799.................................. $76.71 1,800-1,999.................................. $82.14 2,000 - 2,199.................................. $87.64 2,200 - 2,399.................................. $93.13 2,400 - 2,599.................................. $98.61 2,600 - 2,799.................................. $104.09 2,800 - 2,900.................................. $109.71 3,000 - 3,499.................................. $115.03 Over 3,500'.................................... $5.46 '(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2023. Passed, approved and adopted this 231d day of March, 2023. rad Cavanigh, Mayor Attest: Adrienne Breitfelity Clerk STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 04/11/2023 and for which the charge is 38.32 adA Subscribed to before me, a Notary Public jin and for Dubuque County, Iowa, this 1 lth day of April, 2023 ' Notary P ..ic in and for Dubuque County, Iowa. puL JANET K. PAPE Commission,Number 199659 My Commission Expires ,ow . 12/1112025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 11-23 ESTABLISHING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES, SECTION 13-1C-1(A) FIXING WATER RATES FOR RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND ALL OTHER USES NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-1C-1(A) of the City of Dubuque Code of Ordinances, is hereby unchanged, and shall read as follows: Section 13-1C-1A: Residential, Commercial, Industrial and All Other Uses. A. "Rates Established: The rates to be charged for water for residential, commercial, industrial and all other uses and purposes by any person, firm or corporation within the city shall be based on units of one hundred cubic feet (748 gallons) or per gallon as follows: Monthly Consumptiontharge per (in Hundreds of Cubic Feet)"" Hundred Cubic Feet" First 30" $4.50 Next 120" $3.66 Next 350" $3.40 Neat- 500" $3.00 Over 1,000" $2.67 Monthly Consumption"Charge per (in Gallons)"""Gallon" First 22,440" $0.00597 Next 89,760" $0.00490 Next 261,800" $0.00457 Next 374,000" $0.00403 Over 748,000" $0.00353 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Meter Size (Inches); Monthly Consumption (In Hundreds of Cubic Feet); Monthly Consumption (In Gallons); Minimum Charge 5/8; 2; 1,496; $8.93; 3/4; 5; 3,740; $22.33; 1; 8; 5,984; $35.72; 1 1/2; 26; 19,448; $116.10; 2; 46; 34,408; $192.61; 3,w1.06; 79,288; $412.52; 4; 168; 125,664; $635.32; 6;'368; 275,264; $1,318.99; 8; 625; 467,500; $2,147.02; A property owner shall pay a $50.00 disconnect fee for water service that is disconnected by the city for a meter not in service. When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $50.00 disconnect fee. A $50.00 service call fee shall be changed to property owners or tenant account for those service calls that are determined to be related to customer negligence. A $8.93 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2023. Passed, approved and adopted this 23rd day of March, 2023. /s✓Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, CMC, City Clerk Published officially in the Telegraph Herald newspaper on the llth day of April, 2023. /s/Adrienne N. Breitfelder, City Clerk It 4/11 STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION 1, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 04/11/2023 and for which the charge is 25.28 Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 11th day of April, 2023 Notary Ptic in and for Dubuque County, Iowa. gut JANET K. PAPE c�h, , 1' Commission Number 199659 a r • ' My Commission Expires rows 12/11/2025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION, ORDINANCE NO. 12-23 ESTABLISHING THE CITY OF PUBUQUE CODE CIF ORDINANCES TITLE 13 PUBLIC UTILITIES CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES SECTION 13-1C-2 FIXING WATER RATES FOR FIRE SPRINKLER SERVICE ° NOW, THEREFORE, I3E IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-1C-2 of the City of Dubuque Code of Ordinances is hereby unchanged, and shall read as follows: Section 13-1C-2: Fire Sprinkler Service. customers who have fire sprinkler service shall be billed for khiis service on a monthly basis, The monthly charge shall be as follows: CURRENT NUMBER OF HEADS;" MONTHLY CHARGES Up to 200 (minimum);^ $27.41 200-299;" $32.91 300-399;" $38.32 400-599;" $43.86 600-799;" $49.29 800 -999;" $54,81 1,000 - 1,199;" $60.31 1,200 - 1,399;" $65.73 1,400 - 1,599;" $71.22 1,600 - 1,799;" $76.71 1,800 - 1,999;".$82.14 2,000 - 2,199;" $87.64 2,200 - 2,399;" $93.13 2,40 - 2,599;" $98.61 2,600 - 2,799;" $104.09 2,800 - 2,900;" $109.71 3,000 - 3,499.;" $115.03 Over 3,500*;" $5.46 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2023. Passed, approved and adopted this 23rd day of March, 2023. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, CMC, City Clerk Published officially in the Telegraph Herald newspaper on the llth day of April, 2023. /s/Adrienne N. Breitfelder, City Clerk 1t4/11