Temporary rate increases shall be imposed pursuant to the following parameters:
(A) For emergency expenditures or capital improvements between $300,000 and $500,000, a rate shall be set to replenish the Gas Fund in three years; and
(B) For emergency expenditures or capital improvements between $500,001 and $750,000, a rate shall be set to replenish the Gas Fund in four years; and
(C) For emergency expenditures or capital improvements between $750,001 and $1,000,000, a rate shall be set to replenish the Gas Fund in five years; and
(D) For emergency expenditures or capital improvements of more than $1,000,000, a rate shall be set to replenish the Gas Fund in six years; and
(E) For emergency expenditures or capital improvements of less than $300,000, the City Council may authorize a temporary rate increase; and
(F) Each temporary rate increase will be established using an estimated or engineered cost of the improvement or emergency expenditure, divided by the estimated gas usage for the expected payoff time frame. When the exact cost of the improvement is established, it will replace the estimated cost of the calculation. The Budget Officer will perform the necessary calculations and track the revenue from the temporary rate increase. Should there be reimbursement by third parties, it will be used to offset the capital improvement costs. When the cost of the improvement or the cost of emergency expenditure is completely offset by the temporary rate increase and any reimbursements, the city will discontinue the temporary increase the following month.
(Ord. 1625, passed 1-28-2013)