(A) Charge. The proposed wastewater user charge system uses a monthly wastewater charge for all customers. Sewer bills are based on 100% of the customer’s monthly water consumption.
(B) Customer classification. The proposed wastewater user charge system strives to ensure an equal distribution of collection and treatment costs to the wastewater users. All customers with normal strength sewage, whether residential or commercial, will receive the same minimum bill and will be charged the same cost per equal volume of flow treated.
(C) Charge system. The proposed wastewater user charge system will consist of three individual charges. Each customer’s bill will be calculated as follows:
Monthly Bill = Fixed Cost (Debt Service) + OM&R Cost (Includes Administrative Charges) + Surcharge |
(1) The fixed cost charge is based on the perpetual costs of providing wastewater service to the city, regardless of the actual wastewater contribution. Debt service is considered a fixed cost, independent of the amount of wastewater treated.
(2) The OM&R charge is based on the actual cost of operating the wastewater transportation and treatment system plus a specified amount for replacement of equipment. This would include any administrative charges.
(3) The surcharge is applicable only to customers who contribute wastewater containing levels of pollutants above the maximum established limits.
(D) Wastewater user rate. The wastewater user rate for the city will be based on operation and maintenance charges plus an additional $9,000 for replacement. The projected operating expenses for FY 97—98 are $308,000 which includes replacement.
(E) Projected water use.
(1) The projected water use billed in FY 97—98 is 108,000,000 gallons with a proposed 1,876 customer base. No industrial flow is anticipated at this time. The wastewater OM&R rate would be the total operating cost divided by the water use as shown in Example VI.
Example VI User Charge OM&R Rate Calculations | ||||
OM&R Estimated Annual Cost | Average Annual Water Usage (1,000 Gallons) | OM&R Rate per 1,000 Gallons | ||
$308,000 | ÷ | 108,000 | = | $2.85 |
(2) Therefore, the average charge to produce the required annual revenue for operation, maintenance and replacement should be $2.85/1,000 gallons of water usage. This cost must be paid equally by each customer based on their actual water use.
(Prior Code, § 54.24) (Ord. passed - -)