Prepared by the City Attorney

ORDINANCE NO. 10-00

AN ORDINANCE TO SET WASTEWATER
TREATMENT UTILITY RATES

WHEREAS, the City of West Lafayette has previously constructed and has in operation wastewater collection and treatment works for the purpose of collecting and disposing in an environmentally sound manner, the wastewater of the City; and

WHEREAS, the West Lafayette Common Council has statutory authority to set rates for the wastewater treatment utility;

WHEREAS, Indiana Code section 36-9-23-7 provides that the West Lafayette Board of Works shall operate, manage and control the wastewater treatment utility; and

WHEREAS, the Board of Public Works has determined that in order to meet current and future environmental regulations and goals it is necessary to proceed with the repair of the Happy Hollow Interceptor and wet weather treatment for combined sewer overflows; and

WHEREAS, the Board of Public Works has contracted with Malcolm Pirnie, engineers, to prepare an amendment to the Facility Plan to provide for such a project; and

WHEREAS, the wastewater treatment utility can qualify for a low interest rate loan for a 20 year principal repayment period under the State Revolving Loan Fund (SRF) program, which would be the most advantageous method of funding the needed improvements set forth in the amendment to the Facility Plan; and

WHEREAS, the Board of Public Works plans to finance such project with a loan from the SRF at an advantageous interest rate which would save city rate payers; and

WHEREAS, the project would involve expenditures in excess of the amount which could be financed from current rates and charges; and

WHEREAS, the Board of Public Works has retained a financial advisor, Umbaugh and Associates, to prepare a financial report for the wastewater treatment utility; and

WHEREAS, the financial advisor has determined that a 5 percent rate increase on July 1, 2000 and a similar increase on July 1, 2001 and another such increase on July 1, 2002 would be sufficient to meet the current and projected financial requirements of the utility, including debt service on the SRF program, until the year 2003 and not including any increase which will be required by the western interceptor or changes in billable flow; and

WHEREAS, the West Lafayette Wastewater Treatment Utility cannot participate in the SRF program without a rate structure sufficient to meet those current and future needs, as determined by its financial advisor; and

NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF WEST LAFAYETTE that:

Section 1. West Lafayette City Code section 30.09.3.1 is amended to read as follows:

30.09.3.1. Rates - General. The water usage schedule on which the amount of rates and charges shall be determined is as follows:

Two dollars and forty-twosixty-seven cents per one thousand gallons ($2.4267/1,000 gallons). This includes $1.2627/1,000 gallons for operations, maintenance and replacement and $1.1627/1,000 gallons for debt service. For service rendered after July 1, 19982000, two dollars and fifty-foureighty cents per one thousand gallons ($2.5480/1,000 gallons). This includes $1.3340/1,000 gallons for operations, maintenance and replacement and $1.2140/1,000 gallons for debt service. For service rendered after July 1, 19992001, two dollars and sixty-sevenninety-four cents per one thousand gallons ($2.6794/1,000 gallons). This includes $1.4044/1,000 gallons for operations, maintenance and replacement and $1.2750/1,000 gallons for debt service. For service rendered after July 1, 2002, three dollars and nine cents per one thousand gallons ($3.09/1,000 gallons). This includes $1.49/1,000 gallons for operations, maintenance and replacement and $1.60/1,000 gallons for debt service.

The minimum charge for any service where the user is not a metered water consumer shall be based on the size of the service connection, but no such charge shall be less than the charge for the minimum gallonage for such meter size.

The water usage schedule on which the amount of rates and charges shall be determined for Purdue University as follows:

A billing charge of $1.892.35 per month plus a usage charge of two dollars and twenty-ninefifty-three cents per one thousand gallons ($2.2953/1,000 gallons). This includes $1.1326/1,000 gallons for operations, maintenance and replacement and $1.1627/1,000 gallons for debt service. For service rendered after July 1, 19982000, a billing charge of $2.2450 per month plus a usage charge of two dollars and forty-onesixty-five cents per one thousand gallons ($2.4165/1,000 gallons). This includes $1.2025/1,000 gallons for operations, maintenance and replacement and $1.2140/1,000 gallons for debt service. For service rendered after July 1, 19992001, a billing charge of $2.3560 per month plus a usage charge of two dollars and fifty-threeseventy-nine cents per one thousand gallons ($2.5379/1,000 gallons). This includes $1.2629/1,000 gallons for operations, maintenance and replacement and $1.2750/1,000 gallons for debt service. For service rendered after July 1, 2002, a billing charge of $2.65 per month plus a usage charge of two dollars and ninety-three cents per one thousand gallons ($2.93/1,000 gallons). This includes $1.33/1,000 gallons for operations, maintenance and replacement and $1.60/1,000 gallons for debt service.

On or before June 1, 19982001, the Common Council will review the wastewater utility revenues, expenses and rates and take any necessary action to provide financing for the wet weather treatment for combined sewage overflowmaintain rates as required by applicable bond ordinances and as recommended by the utility's financial advisor.

This ordinance shall be in full force and effect from and after its passage and signing by the Mayor.

Office of the Clerk-TreasurerJudy Rhodes

 
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West Lafayette, Indiana 47906
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