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Establishing Water Utility Rates for Fiscal Year 2026THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Christopher Lester, Water Department Director Dubuque All -America City NxIAMAI (M,11A AJI: 2007*2012.2013 2017*2019 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: April 1, 2025 INRODUCTION The purpose of this memorandum is to provide two ordinances for review and approval. These ordinances establish the FY26 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 Department's budget request for FY26 that a 9% rate increase be implemented. It is also recommended that the Minimum Monthly Water Charge be increased to $9.70, which also reflects a 9% 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. Proposed FY26 Water Rates Comparison (6,000 Gallons) S50.00 $45.00 S40.00 $35.00 S30.00 S25.00 S20.00 S15.00 S10.00 S5.00 S- Council Ames Iowa City Average Dubuque Bluffs w/o Dubuque Cedar West Des Des Rapids Moines Moines Page 188 of 241 Rank, Highest to Lowest City Proposed FY25 Water Cost for 6,000 Gallons 1 Des Moines $ 46.00 2 West Des Moines $ 45.41 3 Cedar Rapids $ 44.02 4 Dubuque $ 42.58 5 Iowa City $ 38.59 6 Ames $ 37.77 7 Council Bluffs $ 37.13 The proposed rate increase of 9% would place Dubuque as having the fourth lowest water rate. The highest rate (Des Moines) is 8.03% higher than Dubuque's rate. The average without Dubuque is 2.20% higher than Dubuque's proposed rate. RECOMMENDATION It is recommended the attached proposed ordinances be submitted to the City Council for adoption during the FY26 Budget Hearings with an effective date of July 1, 2025. cc: Crenna Brumwell, City Attorney Jenny Larson, Chief Financial Officer Adrienne Breitfelder, City Clerk Randy Gehl, Public Information Officer File K Page 189 of 241 City of Dubuque Water Utility Fiscal Year Rate Comparison FY2025 to FY2026 Rates based on units of one -hundred cubic feet (748 gallons) Actual Proposed Monthly FY25 FY26 Consumption (CCF) 12.00% 9.00% First 30 $ 4.91 $ 5.35 Next 120 $ 3.99 $ 4.35 Next 350 $ 3.71 $ 4.04 Next 500 $ 3.27 $ 3.56 Over 1,000 $ 2.90 $ 3.16 Monthly FY25 FY26 Consumption (Gals) 12.00% 9.00% First 22,440 $ 0.00651 $ 0.00710 Next 89,760 $ 0.00534 $ 0.00582 Next 261,800 $ 0.00497 $ 0.00542 Next 374,000 $ 0.00439 $ 0.00479 Over 748,000 $ 0.00384 $ 0.00419 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Actual Proposed Meter Cubic FY25 FY26 Size Feet Gallons 12.00% 9.00% 5/8 2 1,496 $ 9.74 $ 10.62 3/4 5 3,740 $ 24.36 $ 26.55 1 8 5,984 $ 38.96 $ 42.49 1 1 /2 26 19,448 $ 126.61 $ 138.08 2 46 34,408 $ 209.99 $ 244.30 3 106 79,288 $ 449.65 $ 562.94 4 168 125,664 $ 692.32 $ 892.21 6 368 275,264 $ 1,435.83 $ 1,954.37 8 625 467,500 $ 2,337.01 $ 3,319.25 a) For users outside the city limits, an additional charge equal to 50% of the above rates will be made b) A $9.70 minimum monthly charge shall be assessed for meters not in service, this reflects the 9% rate increase. Page 190 of 241 City of Dubuque Fire Sprinkler Rate Comparison FY2025 to FY2026 Up to 200 (minimum) $ 200-299 $ 300-399 $ 400-599 $ 600-799 $ 800-999 $ 1,000 - 1,199 $ 1,200 - 1,399 $ 1,400 - 1,599 $ 1,600 - 1,799 $ 1,800 - 1,999 $ 2,000 - 2,199 $ 2,200 - 2,399 $ 2,400 - 2,599 $ 2,600 - 2,799 $ 2,800 - 2,900 $ 3,000 - 3,499 $ Over 3,500* $ *(for each additional 500 heads or fraction thereof) Actual Proposed FY25 FY26 12.00% 9.00% 29.85 $ 32.54 35.83 $ 39.05 41.72 $ 45.47 47.76 $ 52.06 53.67 $ 58.50 59.68 $ 65.05 65.67 $ 71.58 71.57 $ 78.01 77.55 $ 84.53 83.53 $ 91.05 89.44 $ 97.49 95.44 $ 104.03 101.40 $ 110.53 107.39 $ 117.06 113.34 $ 123.54 119.46 $ 130.21 125.26 $ 136.53 5.95 $ 6.49 Page 191 of 241 Prepared by: Christopher Lester Water Department 901 Hawthorn St., Dubuque IA 52001 (563) 589-4290 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 10-25 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 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 Charge per Hundred Cubic Feet $5.35 $4.35 $4.04 $3.56 $3.16 Monthly Consumption Charge per (in Gallons) Gallon First 22,440 $0.00710 Next 89,760 $0.00582 Next 261,800 $0.00542 Next 374,000 $0.00479 Over 748,000 $0.00419 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Meter Size Inches 5/8 3/4 1 1 1/2 2 3 4 Monthly Consumption (In Hundreds of Cubic Feet) 2 5 8 26 46 106 168 Monthly Consumption (In Gallons) 1,496 3,740 5,984 19,448 34,408 79,288 125,664 Minimum Cha $10.62 $26.55 $42.49 $138.08 $244.30 $562.94 $892.21 e 6 368 275,264 $1,954.37 8 625 467,500 $3,319.25 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 $9.70 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2025. Passed, approved and adopted this 28th day of April, 2025. rad M. nagh, Mayor Attest: Adrienne N. Breitfelder, City Clerk Prepared by: Christopher Lester Water Department 901 Hawthorn St., Dubuque IA 52001 (563) 589-4290 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13'h St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 11-25 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 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) ..................... $32.54 200-299.................................... $39.05 300-399.................................... $45.47 400-599.................................... $52.06 600-799.................................... $58.50 800 -999.................................... $65.05 1,000 - 1,199.................................. $71.58 1,200 - 1,399.................................. $78.01 1,400 - 1,599.................................. $84.53 1,600 - 1,799.................................. $91.05 1,800 - 1,999.................................. $97.49 2,000 - 2,199.................................. $104.03 2,200 - 2,399................................. $110.53 2,400 - 2,599.................................. $117.06 2,600 - 2,799.................................. $123.54 2,800 - 2,900.................................. $130.21 3,000 - 3,499 .................................. $136.53 Over 3,500*.................................... $6.49 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2025. Passed, approved and adopted this 28th day of April, 2025. rad M agh, Mayor Attest: o4i� 4 Adrienne N. Breitfel er, 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: 05/07/2025 and for which the charge is 38.95 Subsbribed to befol-e me, a Notary Public in and for Dubuque County, Iowa, this 7th day of May, 2025 r4; Notary c in and for Dubuque C unty, Iowa. tiPP'AL sF JANET K. PAPE y Commission Number 199659 My Commission Expires /ow, 12/11/2025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 10-25 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); Charge per Hundred Cubic Feet; First 30; $5.35 Next 120; $4.35 Next 350; $4.04 Next 500; $3.56 Over 1,000; $3.16 Monthly Consumption (in Gallons); Charge per Gallon; First 22,440; $0.00710 Next 89,760; $0.00582 Next 261,800; $0.00542 Next 374,000; $0.00479 Over 748,000; $0.00419 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; $10.62; 3/4; 5; 3,740; $26.55; 1; 8; 5,984; $42.49; 1 1/2; 26; 19,448; $138.08; 2; 46; 34,408; $244.30; 3; 106; 79,288; $562.94; 4; 168; 125,664; $892.21; 6; 368; 275,264; $1,954.37; 8; 625; 467,500; $3,319.25; 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 $9.70 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2025. Passed, approved and adopted this 28th day of April, 2025. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 7th day of May, 2025. /s/Adrienne N. Breitfelder, City Clerk It 5/7 NA5 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: 05/07/2025 and for which the charge is 25.68 Subscribed to before me a Nota r �} blic in and for Dubuque County, Iowa, this 7th day of May, 2025 ' Notai{y P�iblic in and for Dubuque County, Iowa. JANET K. PAPE 7 Commission Number 199659 My Commission Expires 12/11/2025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 11-25 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); $32.54 200-299; $39.05 300-399; $45.47 400-599; $52.06 600-799; $58.50 800 -999; $65.05 1,000 - 1,199; $71.58 1,200 - 1,399; $78.01 1,400 - 1,599; $84.53 1,600 - 1,799; $91.05 1,800 - 1,999; $97.49 2,000 - 2,199; $104.03 2,200 - 2,399; $110.53 2,400 - 2,599; $117.06 2,600 - 2,799; $123.54 2,800 - 2,900; $130.21 3,000 - 3,499; $136.53 Over 3,500*; $6.49 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2025. Passed, approved and adopted this 28th day of April, 2025. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 7th day of May, 2025. /s/Adrienne N. Breitfelder, City Clerk l t 5/7