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Establishing Sanitary Sewer Rates under City of Dubuque Code of Ordinances Copyrighted April 15, 2024 City of Dubuque Action Items # 03. City Council Meeting ITEM TITLE: Establishing Sanitary Sewer Rates under City of Dubuque Code of Ordinances for Fiscal Year 2025 SUM MARY: City Manager recommending City Council adopt an ordinance establishing sewer 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 City of Dubuque Code of Ordinances Title 13 Public Utilities, Chapter 2 Sewers and Sewage Disposal,Article C Rates, Section 13-2C-3 rates established for Fiscal Year 2025 SUGGESTED Suggested Disposition: Receive and File; Motion B; MotionA DISPOSITION: ATTACHMENTS: Description Type Staff inemo, Proposed Sanitary Sewer Rates for Staff Memo FY2025 Amendment to Ordinance 13-2C3, Sanitary Sewer Ordinance Rates for FY25 Dubuque THE CITY OF � All-America Gip� Du B E ��� �,� :��� � � ��► � � Maste iece on the Mississi i z°°'�z°iZ`z°13 � pp zo1�*zois TO: Michael C. Van Milligen, City Manager FROM: Deron Muehring, Water & Resource Recovery Center Director SUBJECT: Sanitary Sewer Rate Changes for Fiscal Year 2025 DATE: April 11, 2024 INTRODUCTION: The purpose of this memo is to recommend modification of Sections 13-2C-3(B) and 13-2C-3(C)(7) of the Code of Ordinances, thereby adjusting the sanitary sewer rates as proposed with the Fiscal Year 2025 budget. DISCUSSION: Sanitary sewer revenue is used to fund both the operation and maintenance required for the more than 300 miles of sanitary sewers and the treatment facilities at the Water & Resource Recovery Center. It also provides capital improvements, investments in both the collection and treatment systems. The proposed FY25 budget includes $462,000 in new funding for chemical dosing at the WRRC to mitigate odors. It also includes $75,000 in new funding to increase the frequency that the anaerobic digesters are cleaned which will also reduce odor emissions. Both will improve process efficiency and reliability. The proposed FY25-29 budget also includes funding for capital improvement projects, investments in sewer infrastructure. Some of the more prominent projects are as follows: PROJECT/IMPROVEMENT DESCRIPTION TOTAL COST W&RRC High Strength Waste Receiving & Storage $6,200,000 W&RRC Industrial Control Updates $3,000,000 W&RRC BOD Capacity Upgrades $1,100,000 Chaplain Schmitt Island Sanitary Sewer and Lift Station Improvements $2,600,000 Catfish Creek Sewershed Interceptor Sanitary Sewer Improvements $47,000,000 Terminal Street Lift Station Improvements $6,500,000 TOTAL $66,400,000 Service People Integrity Responsibility Innovation Teamwork The budget reflects the use of $56,757,886 in Sanitary Sewer State Revolving Fund (SRF) Loans to fund the more than $66 million in improvements. A nine percent (9%) rate increase is proposed with the FY25 budget to fund operational improvements and infrastructure investments at the WRRC and sanitary sewer collection system throughout the city. This would mean a $4.50 increase on the monthly bill for the average household. RECOMMENDATION: I recommend amending the City Code of Ordinances to increase the sanitary sewer rates by 9% in support of the proposed Fiscal Year 2025 budget. ACTION REQUESTED I respectfully request passing the attached ordinance, amending Sections 13-2C-3(B) and 13-2C-3(C)(7) of the Code of Ordinances to increase the sanitary sewer rates by 9% as proposed with the Fiscal Year 2025 budget. Attach. Cc: Crenna Brumwell, City Attorney Jennifer Larson, Chief Financial Officer Adrienne Breitfelder, City Clerk Service People Integrity Responsibility Innovation Teamwork Prepared by Deron Muehrin WR&RC Director, 795 Julien Dubuque Dr. Dubuque, IA 52003 563 -589-4176 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h 5t., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 12-24 CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13- 2C-3 RATES ESTABLISHED FOR FISCAL YEAR 2025 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-2C-3 of the City of Dubuque Code of Ordinances reads as follows: 13-2C-3: RATES ESTABLISHED: Contributors whose property lies within the corporate limits of the city, except as otherwise provided in this article, shall pay to the city at the same time payment for water services is made, a sewer service charge computed on water consumption on the following rates: B. Schedule Of Rates: Rate per each 100 cubic feet $6.83 Rate per each gallon 0.00913 C. Service Charge- 7. Where the quantity of water consumed is such that the minimum of service is charged, the minimum sewer service charge, according to the size of the meter, shall be as follows: Meter Size Allowance Allowance (Inches} Minimum Charge (Cubic Feet) 4 (Gallons) 51a $13.67 200 1,496 314 �$34.16 500 [3,740 1 or larger �$54.66 800 5,984 Section 2. This Ordinance shall take effect on the 1 sc day of July, 2024. Passed, approved, and adopted this 15th day of April 2024. `Brad M~ Cava nag.v , ayor Attest: f Adrienne N. Breitfelder, City 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: 05/02/2024 and for which the charge is 24.01 rad Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 2nd day of May, 2024 Notary Pub and for Dubuque Co ty, Iowa. �PPtAL � JANET K. PAPE 0 Commission Number 199659 My Commission Expires lower 12/11/2025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 12-24 CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13-2C-3 RATES ESTABLISHED FOR FISCAL YEAR 2025 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-2C-3 of the City of Dubuque Code of Ordinances reads as follows: 13-2C-3: RATES ESTABLISHED: Contributors whose property lies within the corporate limits of the city, except as otherwise provided in this article, shall pay to the city at the same time payment for water services is made, a sewer service charge computed on water consumption on the following rates: B. "Schedule Of Rates: Rate per each 100 cubic feet; $6.83 Rate per each gallon; 0.00913 C. "Service Charge: 7. "Where the quantity of water consumed is such that the minimum of service is charged, the minimum sewer service charge, according to the size of the meter, shall be as follows: Meter Size (Inches); Minimum Charge; Allowance (Cubic Feet); Allowance (Gallons) 5/8; $13.67; 200; 1,496 3/4; $34.16; 500; 3,740 1 or larger; $54.66; 800; 5,984 Section 2. This Ordinance shall take effect on the 1st day of July, 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