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Establishing Water Rates under City of Dubuque Code of Ordinances Copyrighted April 15, 2024 City of Dubuque Action Items # 02. City Council Meeting ITEM TITLE: Establishing Water Rates under City of Dubuque Code of Ordinances for Fiscal Year 2025 SUM MARY: City Manager recommending City Council adopt the ordinances establishing water rates under City of Dubuque Code of Ordinances for Fiscal Year 2025. Additional information is located in the City Manager's memo for Public Hearing #4. ORDINANCE Establishing City of Dubuque Code of Ordinances Title 13 Public Utilities, Chapter 1 Water Use and Service,Article C Rates, Section 13-1 C-1(A) Fixing Water Rates for Residential, Commercial, Industrial, and all other uses ORDINANCE Establishing the City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Water Use and Service,Article C Rates Section 13-1 C-2 Fixing Water Rates for Fire Sprinkler Service SUGGESTED Suggested Disposition: Receive and File; Motion B; MotionA DISPOSITION: ATTACHMENTS: Description Type Fiscal Year 2025 Water Rates Memo City Manager Memo FY25 Ordinance Water Use and Service Rates Ordinance FY25 Sprinkler Ordinance Ordinance Water Sprinkler Rate Comparison FY2024 to FY2025 Supporting Documentation Water Utility Fiscal Year Rate Comparison FY2024 to Supporting Documentation FY2025 Dubuque THE CITY OF � All•Amerisa Cit� D B E .,���,�� ��.�� U ' I I�► � � Mast2 i2ce on the MiSsiSsi i zoo���oi�•zoi3 �P pp zai�*zoi� 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 13-1 C-1(a) Residential, Commercial, Industrial, and other uses; and Section 13-1 C-2 Fire Sprinkler Service DATE: March 21, 2024 INRODUCTION The purpose of this memorandum is to provide two ordinances for review and approval. These ordinances establish the FY25 City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Article C, Section 13-1 C-1(a) Fixing Water Rates for Residential and Industrial Use and all other uses; and Section 13-1 C Fixing Water Rates for Fire Sprinkler Service. DISCUSSION It is recommended in the Water DepartmenYs budget request for FY25 that a 12% rate increase be implemented. It is also recommended that the Minimum Monthly Water Charge be increased to $8.90, which also reflects a 12% rate increase. Proposed and approved rate structures of comparable lowa 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. Prapased FY25 Water Rates Camparisan ��,00❑ Gallvns} Sso.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $- , Council Ames lowa City ❑ubuque A�erage Cedar Qes West Qes Bluffs w�o Rapids Moines Moines ❑ubuque Rank, Proposed FY25 Highest to City Water Cost for Lowest 6,000 Gallons � West Des � 44.21 Moines 2 Des Moines $ 41.92 3 Cedar Rapids $ 41.91 4 Dubuque $ 39.06 5 lowa City $ 37.48 6 Ames $ 36.49 7 Council Bluffs $ 32.40 The proposed rate increase of 12°/o would place Dubuque as having the fourth lowest water rate. The highest rate (West Des Moines) is 13.18°/o higher than Dubuque's rate. The average without Dubuque is 0.02% higher than Dubuque's proposed rate. RECOMMENDATION It is recommended the attached proposed ordinances be submitted to the City Council for adoption during the FY25 Budget Hearings with an effective date of July 1, 2024. cc: Crenna Brumwell, City Attorney Jenny Larson, Director of Finance and Budget Adrienne Breitfelder, City Clerk Randy Gehl, Public Information Officer File 2 Prepared by: Christopher Lester, Water Department Manager, 901 Hawthorn St., Dubuque, IA 52001 (563) 589-4290 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1P St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 10-24 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 13-1 C-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 Ali 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 Charge per Hundred Cubic Feet $4.91 $3.99 $3.71 $3.27 $2.90 Monthly Consumption Charge per (in Gallons) Gallon First 22,440 $0.00651 Next 89,760 $0.00534 Next 261,800 $0.00497 Next 374,000 $0.00439 Over 748,000 $0.00384 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) 518 2 314 5 1 8 1 112 26 2 46 3 106 4 168 Monthly Consumption (In Gallons) Minimum Ch 1,496 $9.74 3,740 $24.35 5,984 $38.96 19,448 $126.61 34,408 $209.99 79,288 $449.65 125,664 $692.32 e 6 368 275,264 $1,435.83 8 625 467,500 $2,337.01 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 $8.90 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2024. Passed, approved and adopted this 15th day of April, 2024. r d M. Cavanagh, Mayor Attest: 6Z5� 1 �' , - sj.� Adrienne N. Breitfelder, City Clerk Prepared by: Christopher Lester, Water Department Manager, 901 Hawthorn St., Dubuque, IA 52001 (563)5589-4290 Return to Adrienne N. Breittelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 11-24 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) ..................... $29.85 200-299 . .. . .. . .. . .......................... $35.83 300-399.................................... $41.72 400-599 ...... . ..... . ....................... $47.76 600-799 ......................... ...... . .... $53.67 800 -999.................................... $59.68 1,000 - 1,199.................................. $65.67 1,200 - 1,399.................................. $71.57 1,400 - 1,599.................................. $77.55 1,600 - 1,799 .................................. $83.53 1,800 - 1,999.................................. $89.44 2,000 - 2,199.................................. $95.44 2,200 - 2,399.................................. $101.40 2,400 - 2,599.................................. $107.39 2,600 - 2,799.................................. $113.34 2,800 - 2,900.................................. $119.46 3,000 - 3,499.................................. $125.26 Over 3,500*.................................... $5.95 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2024. Passed, approved and adopted this 15th day of April, 2024. rad M. J nagh, Mayor Attest: Adrienne N. Breitfelder, ity Clerk City of Dubuque Fire Sprinkler Rate Comparison FY2024 to FY2025 Actual Proposed FY24 FY25 5.00% 12.00% Up to 200 (minimum) $ 26.65 $ 29.85 200-299 $ 31.99 $ 35.83 300-399 $ 37.25 $ 41.72 400-599 $ 42.64 $ 47.76 600-799 $ 47.92 $ 53.67 800-999 $ 53.29 $ 59.68 1,000 - 1,199 $ 58.63 $ 65.67 1,200 - 1,399 $ 63.90 $ 71.57 1,400 - 1,599 $ 69.24 $ 77.55 1,600 - 1,799 $ 74.58 $ 83.53 1,800 - 1,999 $ 79.86 $ 89.44 2,000 - 2,199 $ 85.21 $ 95.44 2,200 - 2,399 $ 90.54 $ 101.40 2,400 - 2,599 $ 95.88 $ 107.39 2,600 - 2,799 $ 101.20 $ 113.34 2,800 - 2,900 $ 106.66 $ 119.46 3,000 - 3,499 $ 111.84 $ 125.26 Over 3,500* $ 5.31 $ 5.95 *(for each additional 500 heads or fraction thereof) City of Dubuque Water Utility Fiscal Year Rate Comparison FY2024 to FY2025 Rates based on units of one-hundred cubic feet(748 gallons) Actual Proposed Monthly FY24 FY25 Consumption (CCF) 5.00% 12.00% First 30 $ 4.38 $ 4.91 Next 120 $ 3.56 $ 3.99 Next 350 $ 3.31 $ 3.71 Next 500 $ 2.92 $ 3.27 Over 1,000 $ 2.59 $ 2.90 Monthly FY24 FY25 Consumption (Gals) 5.00% 12.00°/o First 22,440 $ 0.00581 $ 0.00651 Next 89,760 $ 0.00477 $ 0.00534 Next 261,800 $ 0.00444 $ 0.00497 Next 374,000 $ 0.00392 $ 0.00439 Over 748,000 $ 0.00343 $ 0.00384 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Actual Proposed Meter Cubic FY24 FY25 Size Feet Gallons 5.00% 12.00% 5/8 2 1,496 $ 8.69 $ 9.74 3/4 5 3,740 $ 21.73 $ 24.35 1 8 5,984 $ 34.77 $ 38.96 11/2 26 19,448 $ 112.99 $ 126.61 2 46 34,408 $ 187.46 $ 209.99 3 106 79 28$ � 401.54 $ 449.65 4 �68 125,664 $ 618.31 $ 692.32 6 368 275,264 $ 1,282.54 $ 1,435.83 $ 625 467,500 $ 2,087.44 $ 2,337.01 a) For users outside the city limits, an additional charge equal to 50% of the above rates will be made b)A$8.90 minimum monthly charge shall be assessed for meters not in service, this reflects the 12% rate increase. 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: 05/02/2024 and for which the charge is 38.09 Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 2nd day of May, 2024 Notary Pun and for Dubuque County, Iowa. 0 0 2 lowh JANET K. PAPE . Commission Number 199659 My Commission Expires 12/11/2025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 10-24 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-IA: 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); Charge per Hundred Cubic Feet; First 30; $4.91 Next 120; $3.99 Next 350; $3.71 Next 500; $3.27 Over 1,000; $2.90 Monthly Consumption (in Gallons); Charge per Gallon; First 22,440; $0.00651 Next 89,760; $0.00534 Next 261,800; $0.00497 Next 374,000; $0.00439 Over 748,000; $0.00384 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; $9.74; 3/4; 5; 3,740; $24.35; 1; 8; 5,984; $38.96; 1 1/2; 26; 19,448; $126.61; 2; 46; 34,408; $209.99; 3; 106; 79,288; $449.65; 4; 168; 125,664; $692.32; 6; 368; 275,264; $1,435.83; 8; 625; 467,500; $2,337.01; 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 $8.90 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2024. Passed, approved and adopted this 15th day of April, 2024. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 2nd day of May, 2024. /s/Adrienne N. Breitfelder, CMC, City Clerk It 5/2 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: 05/02/2024 and for which the charge is 25.25 (yam c� Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 2nd day of May, 2024 Notary c in and for Dubuque County, Iowa. hPPinc a� JANET K. PAPE a -a Commission Number 199659 z r My Commission Expires iov �^ 12/11/2025 �ow Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 11-24 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 13-1C-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 this service on a monthly basis. The monthly charge shall be as follows: CURRENT NUMBER OF HEADS; MONTHLY CHARGES Up to 200 (minimum); $29.85 200-299; $35.83 300-399; $41.72 400-599; $47.76 600-799; $53.67 800 -999; $59.68 1,000 - 1,199; $65.67 1,200 - 1,399.; $71.57 1,400 - 1,599; $77.55 1,600 - 1,799; $83.53 1,800 - 1,999; $89.44 2,000 - 2,199; $95.44 2,200 - 2,399; $101.40 2,400 - 2,599; $107.39 2,600 - 2,799; $113.34 2,800 - 2,900; $119.46 3,000 - 3,499; $125.26 Over 3,500*; $5.95 *(for each additional 500 heads or fraction thereof);; Section 2. This Ordinance shall take effect July 1, 2024. Passed, approved and adopted this 15th day of April, 2024. /sBrad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 2nd day of May, 2024. /s/Adrienne N. Breitfelder, CMC, City Clerk 1t 5/2