HomeMy WebLinkAboutA001 - Council Action Form dated May 23, 2000 ITEM #
DATE May 23, 2000
COUNCIL ACTION FORM
SUBJECT: WATER RATE INCREASE OPTIONS
BACKGROUND:
During the recent budget hearings, staff presented background information regarding the need for
a 10 percent increase in water rate revenues to meet projected expenses. Staff also investigated
generating additional revenues from Revenue or G.O. Bond issues. The bond options were
rejected because additional rate increases would be needed within a few years. The FY 2000-01
budget was adopted with the 10 percent water rate revenue increase. The Council must now
consider how to implement this increase through adjustments of the minimum bill, unit rate, and
yard meter minimum bills.
Attached is a staff report on two rate options which will raise the required revenue. These two
options are nearly identical except for the adjustment to the unit rate. Both rate options include the
same adjustments to the minimum bill and yard meter minimums. Rate Option No. 1 includes a
single adjustment increasing the unit rate from $1.23 to $1.39/100 cubic feet. Rate Option No. 2
includes a two-tiered adjustment to the unit rate. For consumption during the "summer months"
(billing months July through October), a unit rate of$1.58/100 cubic feet is recommended. During
the "winter months" (billing months November through June), a unit rate of $1.31/100 cubic feet
is recommended. Rate Option No. 2 provides additional incentive encouraging conservation
during the summer months when incremental costs are highest and the water supply is typically
most stressed. Both result in nearly identical dollar impact and percentage increases.
At this time, it is recommended that Council adopt Rate Option No. 1 because of the present
climatological conditions. The City of Ames and most of Iowa are in the midst of a severe drought,
and the total implications are, as yet, unknown. Rate Option No. 2 offers the greatest
encouragement for water conservation. However, implementation of this option at this time will a
possibly cause significant public outrage due to the higher summer unit rate coupled with a
significantly higher water consumption. It will be a "double whammy."
Staff have prepared the necessary rate ordinance to implement either option.
ALTERNATIVES:
1. Adopt Rate Option No. 1, as described above, and pass on first reading this rate proposal.
2. Adopt Rate Option No. 2, as described above, and pass on first reading this rate proposal.
3) Request staff to develop an additional rate structure to consider
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt Alternative No. 1 and
approve Rate Option No. 1.
COUNCIL ACTION:
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CITY OF AMES
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Th 's op-b'ftl
WATER RATE REPORT
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May 23, 2000
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Caring People
Quality Progr—
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1 WATER AND POLLUTION CONTROL DEPARTMENT
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City of Ames
Water Rate Report
Page
Water Fund Overview
1 ■ Water Fund Projection 1
■ Water Fund Projection with 10 Percent Revenue Increase 3
Rate Basics 101
■ Review of Types of Rate Structures 7
■ Declining Block 8
■ Flat Rate 10
■ Inclining Rate 12
■ 1999 Water Rate Survey Data 14
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Ames Water Use Trends and Customer Data
' ■ Water Billing Trend in 1990s 22
■ Jan - Dec 1999 Water Use Frequency Distribution 23
■ Jan - Dec 1999 Yard Meter Use Distribution 26
■ Average Monthly Water Pumping 29
■ Yard Meter Monthly Water Use 31
' ■ Average Monthly Precipitation 32
Council Guidance
■ Summary of Water Rate Adjustments since 1992 33
! ■ Council Rate Guidance since 1992 34
' Rate Options and Impacts
■ Summary of Rate Proposals 35
■ Flat Rate Proposal (Option 1) 36
■ Seasonal Flat Rate Proposal (Option 2) 38
I ■ Distribution of Rate Proposals 40
� Water Fund Overview
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' WATER FUND PROJECTIONS
' WATER FUND SUMMARY Actual Projected
(in$1000s) *10%*
1998 1999 9999=00 0000=01 0101=02 02-03 0303=04 04-05
Beginning Balance
AIIFunds 2826 2336 2294 1524 1093 -279 -744 -1410
Revenues
Metered Sales 4140 4278 4300 4332 4365 4397 4430 4464
' ISU-Campus Contract 490 473 500 515 725 522 533 506
ISU-Cap.Amortization 0 0 0 0 0 0 0 0
Power Plant Raw Water 38 39 43 45 47 50 52 55
Bond Proceeds
Interest 141 129 100 85 66 0 0 0
All Other 348 333 276 281 220 224 229 233
Audit/Adjustments 0 0 0
Rural Water Sales 18 30 31 32 33 34 34 35
I Rural Water Payments 0 0
PP Ash Payments 438 260 260 245 0 0
Total Revenues 5613 5542 5510 5535 5456 5227 5279 5293
Operating Expenses
W.Dept.Operations 1899 1855 2295 2337 2419 2503 2591 2682
P.Wks.Operations 835 832 846 886 917 949 982 1017
Customer Service 234 232 279 334 346 358 370 383
Fin.Admin./Acctg. 87 87 89 94 97 101 104 108
Support Services 163 160 157 162 168 174 180 186
1 Operating Transfers 0 30
Audit/Adjustments 40
Total Operations 3218 3206 3696 3813 3946 4085 4228 4376
Op'ns.Surplus/Deficit 2395 2336 1814 1722 1509 1143 1052 918
CIP(see detail) 2531 2040 2257 1839 2579 1330 1441 1023
WTp CIP 1399 1101 895 850 1975 660 640 385
' Debt Service
(Rev.Bonds)
(G.O.Bonds)
92/
92/ 0.768 M 114 109 105 100 95 87 86
93/ 1.05 M 122 116 113 109 106 97 98
94/ 0.92 M 118 113 109 105 101 94 93 91
Debt Coverage(Rev.Bonds)
' Total Expenses 6103 5584 6280 5966 6827 5693 5946 5490
1 Excess/Deficit -490 -42 -770 -431 -1372 -465 -666 -196
ENDING BALANCE(all funds) 2336 2294 1524 1093 -279 -744 -1410 -1607
Workbook: watmas00.xjs
Worksheet: 2000 Master
' Last Update: 05/18/2000
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WATER FUND PROJECTIONS
Actual Projected
WATER FUND SUMMARY
(in$1000s) '10%" '10%`
1998 1999 9900 0001 0102 0203 0304 040405
Beginning Balance
All Funds 2826 2336 2294 1524 1526 617 628 443
Revenues
Metered Sales 4140 4278 4300 4765 4801 4837 4874 4910
1 ISU-Campus Contract 490 473 500 515 725 522 533 506
ISU-Cap.Amortization 0 0 0 0 0 0 0 0
Power Plant Raw Water 38 39 43 45 47 50 52 55
Bond Proceeds
Interest 141 129 100 85 92 37 38 27
All Other 348 333 276 281 220 224 229 233
Audit/Adjustments 0 0 0
Rural Water Sales 18 30 31 32 33 34 34 35
Rural Water Payments 0 0
PP Ash Payments 438 260 260 245 0 0
Total Revenues 5613 5542 5510 5968 5918 5704 5760 5766
Operating Expenses
W.Dept.Operations 1899 1855 2295 2337 2419 2503 2591 2682
P.Wks.Operations $35 832 846 886 917 949 982 1017
Customer Service 234 232 279 334 346 358 370 383
Fin.Admin./Aectg. 87 87 89 94 97 101 104 108
Support Services 163 160 157 162 168 174 180 186
Operating Transfers 0 30
Auditt Adjustments 40
' Total Operations 3218 3206 3696 3813 3946 4085 4228 4376
Op'ns.Surplus/Deficit 2395 2336 1814 2155 1972 1619 1532 1390
CIP(see detail) 2531 2040 2257 1839 2579 1330 1441 1023
WTP CIP 1399 1101 895 850 1975 660 640 385
Debt Service
(Rev.Bonds)
(G.O.Bonds)
92/
92/ 0.768 M 114 109 105 100 95 87 86
93/ 1.05 M 122 116 113 109 106 97 98
94/ 0.92 M 118 113 109 105 101 94 93 91
Debt Coverage(Rev.Bonds)
Total Expenses
6103 5584 6280 5966 6827 5693 5946 5490
Excess/Deficit -490 -42 -770 2 -909 11 -186 276
ENDING BALANCE(all funds) 2336 2294 1524 1526 617 628 443 719
Workbook: watmas00.xis
Worksheet: 10%
' Last Update: 05/18/2000 3
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� Rate Basics 701
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� REVIEW OF
� TYPES OF RATE STRUCTURES
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� Declining Block Rate
1 Example: Ames — 1973-1978 Rate
' Minimum Bill (res.) — $2.00/month
' Allowance on Minimum Bill — 200 cu ft
First 200 cu ft/month — $1 .00/100 cu ft
Next 200 cu ft/month — .80/100 cu ft
' Next 600 cu ft/month — .70/100 cu ft
Next 9,000 cu ft/month — .65l100 cu ft
Next 90,000 cu ft/month — .55/100 cu ft
Next 400,000 cu ft/month — .50/100 cu ft
Over 500,000 cu ft/month — .39/100 cu ft
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� Declining Block Rate
� Pro
Objective is to derive revenue from each
' customer approximately equal to cost of serving
that customer.
Theory and practice developed over 100 years of
experience in electric and water utilities
If properly done, all user groups pay their cost of
' service.
� Con
Cost-of-service derivation is too complicated to
' explain or understand.
' Old-fashioned and out-moded
Does not attempt or achieve water conservation
or social goals
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� Flat Rate
� Example: Ames — Current Rate
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Minimum Bill (res.) — $6.85/month
Allowance on Minimum Bill — 0 cu ft
Use/month — $1 .23/100 cu ft
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� Flat Rate
' (Ames' Current Rate Structure)
� Pro
Simplicity and appearance of fairness
Compromise between declining and inclining block
rates
� Encourages water conservation
� Con
' No basis or justification in accepted rate practice
' Large users pay more than with a declining block
or cost-of-service rate
' No evidence that water conservation is achieved
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� Inclining Block Rate
Example: Ankeny 1991
Minimum Bill — $4.20/month
Allowance on Minimum Bill — 0 gallons
First 3,000 gallons/month — $1 .88/1 ,000 gallons
Next 17,000 gallons/month — $2. 13/1 ,000 gallons
' Over 20,000 gallons/month — $2.34/1 ,000 gallons
� Inclining Block Rate
� Pro
Encourages water conservation
Large-volume customers exhibit greater response
' to price increases.
Easy to understand since it is opposite of
' declining-block rate
� Con
No basis or justification in accepted rate practice
Large users may pay more than cost-of-service
rate.
! No evidence that water conservation is achieved
Impact to use and revenue projections
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� Residential Water Rates
Iowa Cities over 10,000 Population
July 1999
Flat Rate Inclining Block
' 6 cities 1 city
Ames Ankeny
Coralville
' Marshalltown
Oskaloosa
Urbandale
West Des Moines
' Declining Block
' 21 cities
' Boone Iowa City
Burlington Keokuk
Cedar Falls Marion
Cedar Rapids Mason City
Clinton Muscatine
Council Bluffs Newton
' Davenport/Bettendorf Ottumwa
Des Moines Sioux City
' Dubuque Spencer
Fort Dodge Waterloo
' Fort Madison
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Residential
Water Rates
Iowa Cities over 10,000 Population
' July 1999
Minimum Bill w/o Allowance
11 cities
Ames
Ankeny Des Moines
Fort Madison
Cedar Falls Marshalltown
' Cedar Rapids Muscatine
Clinton West Des Moines
' Davenport/Bettendorf
Minimum Bill w/Allowance (cu ft/month)
17 cities
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Boone 100 Mason City 98
Burlington 640 Newton 200
Coralville 200 Oskaloosa 200
1
' Council Bluffs 300 Ottumwa 300
Dubuque 200 Sioux City 200
Fort Dodge 267 Spencer 400
Iowa City 100 Urbandale 151
Keokuk 267 Waterloo 300
' Marion 300
' 15
t July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
1 Minimum Bill
9.00
' 8.00
' • 7.64
7.00 - - --- --- -
• 6.85 • 6.87 -_- • 6.81 6.79
' Ames 6.46
6.31 • •
• 6.15
6.00 --- - - • 6:-G0- ----• 6.00- ♦6.00 •
' 5.90 5.75 •�65 5.86
5.50 • 5.25
' 5.00 • 5.11-- -
• 4.55
' • 4.20
• 3.36 • 3.50
3.00 -- ---- - 2-. -92-- 3.15•
2.00' • 2.30 2.43 •
1.00 -- - - - ---- -- -- - -- - _ -
0.00
Median = $5.70
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July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
200 cubic feet/month
1 12.00
' 10.00 --- 10.03 9.96•9.90
i • 9.31
•9.73
' Ames
• 8.20
' • 7.64 • 7.58
•7.02
' •6.83
• 6.46 •6.87 • 6.24
6.00 ------ • 6.16� 6. -• 6.00 5.86
5.90 • 5.50
• 5.11 4.78
•
' • 4.48 • 4.55
•4.20
4.00 -
• 3.36
• 2.92
2.43
•
2.00 -- - - -- - -
0.00
Median = $6.08
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' July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
' Monthly Charge for Water Used in Cubic Feet
■ 600 cubic feet/month
' 25.00
• 22.64
20.00 --- -- -- -- --- -- ---- - ----
' • 17.96
• 17.07 16.73
' • • • 16.48
16.40
15.00 - -- -- - - - - ------ ------
' • 14.23
Ames
• 13.04
' • 12.20 1.2.79
• 11.42 . 11.76
• 10.85 • 10.48
10.00 • 9.65 -- 09.8 ----- -•963 •- ---------
08.84 . 8.76 •8.99 .
• 9.00 • 8.99 • • 9.15
8.72 • 8.23
• 7.64
5.00 - -- -- -- --- ---
4.02 •
0.00 - - --
' Median =$10.16
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July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
' 1,000 cubic feet/month
40.00
35.00 35.32
30.00
' •25.00 - 25.88 • 26.16
• 24.254 -
' • 22.93 21.37
20.00 Ames
• 19.15 •
• 1
• 17.45. 17.368.28 • 18.40
• 16.08 • 16.32
15.00 14.60•�-`4-.8t--1-5 00- - - s-1 .
•14.59 • 13.75
• 13.20 ♦ 12.87 • 12.54
• 11.25 — -- • 11_15-__.
10.00
5.00 6.14 •
0.00 -- - - — - --
t
Median = $16.20
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July 1999 Residential Water Rate Survey
1 for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
' 10,000 cubic feet/month
' 300.00
• 260.28
' 250.00 -- - - -- - --- - - - - -
• 231.74
' 214.42
•
200.00 - - - -- - -- - - - - - - -- -- --
• 184.38 174.77 179.96
• •175.20'
• 160.80 • 162.12 #1 57.90
50.40 --�5�7Q-- �- -
150.00 Ames 152.18
' • 136.56
•130.10
12.90
• 111.30 0 •110.55 101 ,22 99.20
- - - -i--- ---
100.00 ------ - - - -t
• 94.10 97.51
• 85.52 t90.13
1 • 67.55
52.51
50.00 - ---
• 44.57
0.00
' Median = $142.50
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July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
■ 100,000 cubic feet/month
' 2,500.00
• 2,346.91
• 2,290.50 2,346.91
' 2,144.92
2,000.00 - - -
' • 1,754.27
• 1,620.12
1,500.00
1552.90 • •1,550.78
- --- - - ---------,- -
• 1,449.20 -- -- -
Ames 1 345.20
1,266.04
• •
1,203.38 •1,191.85
• 1,295.30
1,078.80• •1,087.30
1,000.00 - - - - -- --
j • • 903.57 878.56
906.4 • 802.4 • • •817.93
• 676.04 781.22 4733.04
• 598.49
500.00 _-- -_ - - - -
•476.22 438.81 •
355.87
0.00
Median = $1,083.05
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� Ames Water Use Trends
' and Customer Data
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' FREQUENCY DISTRIBUTION
Average Monthly Water Use - July / December 1999
tAvg. 30 Day
Number of Volume Billed
Cubic Foot Block L-----ions_ --_-_(cu._ft)_____
0-100 402 17,765
101-200 690 109,124
201-300 1,146 290,182
301-400 1,364 478,794
401-500 1,478 664,926
' 501-600 1,494 821,989
601-700 1,309 849,428
701-800 1,068 801,737
801-900 823 696,781
901-1,000 639 605,180
1,001-1,100 512 537,464
' 1,101-1,200 343 393,550
1,201-1,300 246 307,189
1,301-1,400 220 297,269
1,401-1,500 144 208,459
1,501-1,600 126 195,400
1,601-1,700 86 141,865
1,701-1,800 83 145,119
1,801-1,900 54 99,639
1 1,901-2,000 38 74,011
2,001-2,500 177 391,548
2,501-3,000 101 276,119
1 3,001-3,501 87 282,778
3,501-4,000 46 171,298
4,001-4,500 41 174,440
4,501-5,000 39 185,991
5,001-6,000 52 284,596
6,001-7,000 51 332,672
7,001-8,000 41 306,658
8,001-9,000 33 279,257
9,001-10,000 35 334,081
10,001-20,000 107 1,410,467
20,001-30,000 33 771,646
30,001-40,000 12 405,580
40,001-50,000 11 480,915
50,001-100,000 10 610,755
100,001-200,000 7 1,126,165
' 200,001-500,000 6 1,526,762
500,001 &Above _______-____4 _-___7,720,217
13,158 24,807,816
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FREQUENCY DISTRIBUTION
Average Monthly Yard Water Use - July / December 1999
Avg. 30 Day
Number of Volume Billed
Cubic Foot Block -Locations_ _____�cu._ft-- __
--------0-100 ------- - - 552 18,889
101-200 208 30,564
201-300 102 25,347
301-400 92 32,071
401-500 62 27,792
501-600 69 38,015
601-700 41 26,883
701-800 30 22,421
801-900 33 28,218
901-1,000 21 19,647
1,001-1,100 22 23,177
1,101-1,200 21 24,044
1,201-1,300 13 16,118
1,301-1,400 10 13,375
1,401-1,500 12 17,512
1,501-1,600 15 23,387
1,601-1,700 16 26,490
1,701-1,800 12 20,941
1,801-1,900 10 18,633
' 1,901-2,000 9 17,595
2,001-2,500 32 71,553
2,501-3,000 25 67,170
3,001-3,501 13 42,371
3,501-4,000 9 34,346
4,001-4,500 7 29,226
4,501-5,000 9 43,392
5,001-6,000 8 43,037
6,001-7,000 3 19,025
' 7,001-8,000 1 7,248
8,001-9,000 5 42,137
9,001-10,000 3 28,405
10,001-20,000 5 64,118
20,001-30,000 2 44,783
30,001-40,000 1 30,485
' 40,001-50,000 0 0
50,001-100,000 0 0
100,001-200,000 0 0
' 200,001-500,000 0 0
500,001 &Above 0 0
--------------- --------------------
1,473 1,038,415
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� Council Rate Guidance
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1 Summary of Recent Water Rate Adjustments
July 1992 — First increase since 1978
Minimum Bill $4.00/month
Allowance on Minimum Bill 100 cu ft
1 Unit Rate $0.95/100 cu ft
1
1
July 1994 — Minimum Bill $6.00/month
1 Allowance on Minimum Bill 0 cu ft
Unit Rate $1 .14/100 cu ft
1
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1 July 1995 — Yard Meter Minimum $1 .75/month
(First time charge is assessed)
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July 1997 — Minimum Bill $6.85/month
1 Unit Rate $1 .23/100 cu ft
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1
Council Gulmdame for Water and Seer Rate Addustmenf
S
ice2
X Use a Flat (uniform) Rate (i.e. same unit rate for all
water consumed).
■ X Minimum monthly bill should be set to closely recover
actual costs.
' X There is no monthly use allowance—all water use is
billed at the unit rate.
o
X Each Fund is to maintain a 10 /o cash reserve
' (now approximately $450,000 per Fund).
t X Reserves required by bond covenants are to be
maintained as needed.
X Avoid water and sewer increases in the same year.
X Rate/Revenue reviews should project a three- to five-
year interval between increases.
X Avoid large percentage increases by adopting smaller
' increases more frequently or sooner.
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t
� Rate Options and Impacts
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Summary of Water Rate Proposals
1
' CURRENT OPTION 1 OPTION
U O O O ON2
' 7/01/97 7/01/99 7/01/00
Minimum Bill*' $/month - No allowance $6.85 $7.30 $7.30
Unit Rate $1 .23 $1.39 $1 .31 (winter)
' $/100 cubic feet $1 .58 (summer)
Yard Meter Minimum* $1.75 $2.75 $2.75
' $/month
* For 5/8" or 5/8" x 3/4" meter sizes; larger meters prorated
1
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35
COST DISTRIBUTION OF WATER RATE PROPOSALS
Bills for Cubic Feet/Month As Shown
1
' Cubic Feet/Month 0 200 Median
Use 1,000 10,000 100,000
600
Typical Meter Size 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 1" 3"
7/97 Current Rate $6.85 Minimum Bill, Zero Allowance, $1.231100 cu ft unit rate
Monthly Bill, $ 6.85 9.31 14.23 19.15 150.40 1,449.20
' Annual Total, $ 82.20 111.72 170.76 229.80 1,804.80 17,390.40
7/00 Rate Option No. 1 $7.30 Minimum Bill, Zero Allowance, $1.391100 cu ft unit rate
Monthly Bill, $ 7.30 10.08 15.64 21 .20 168.20 1 ,609.00
Annual Total, $ 87.60 120.96 187.68 254.40 2,018.40 19,308.00
$ Increase 5.40 9.24 16.92 24.60 213.60 1 ,917.60
% Increase 6.6 8.3 9.9 10.7 11 .8 11 .0
36
COST DISTRIBUTION OF WATER RATE PROPOSALS
Bills for Cubic Feet/Month As Shown
1
Cubic Feet/Month 0 200 Median
Use 1,000 10,000 100,000
600
Typical Meter Size 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 1" 3"
7/97 Current Rate $6.85 Minimum Bill, Zero Allowance, $1.231100 cu ft unit rate
Monthly Bill, $ 6.85 9.31 14.23 19.15 150.40 1,449.20
' Annual Total, $ 82.20 111.72 170.76 229.80 1,804.80 17,390.40
' Addition For Yard Meter $1.75 Minimum Bill
Monthly Bill Yard Meter, $ 1.75 1.75 1.75 1.75 3.50 3.50
1 Yard Meter Annual , $ 21.00 21.00 21.00 21.00 42.00 42.00
Total Annual Bill 103.20 132.72 191.76 250.80 1,846.80 17,432.40
7100 Rate Option No. 1 $7.30 Minimum Bill, Zero Allowance, $1.391100 cu ft unit rate
Monthly Bill, $ 7.30 10.08 15.64 21 .20 168.20 1 ,609.00
' Annual Total, $ 87.60 120.96 187.68 254.40 2,018.40 19,308.00
' $ Increase 5.40 9.24 16.92 24.60 213.60 1 ,917.60
% Increase 6.6 8.3 9.9 10.7 11 .8 11 .0
Addition For Yard Meter $2.75 Minimum Bill
Monthly Yard Meter Bill, $ 2.75 2.75 2.75 2.75 6.00 6.00
Yard Meter Annual , $ 33.00 33.00 33.00 33.00 72.00 72.00
' Total Annual Bill, $ 120.60 153.96 220.68 287.40 2,090.40 19,380.00
$ Increase 17.40 21 .24 28.92 36.60 243.60 1,947.60
' % Increase 16.7 16.0 15.1 14.6 13.2 11.2
' 37
COST DISTRIBUTION OF WATER RATE PROPOSALS
Bills for Cubic Feet/Month As Shown
1
' Cubic Feet/Month 0 200 Median
Use 1,000 10,000 100,000
600
Typical Meter Size 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 1" 3"
1
7/97 Current Rate $6.85 Minimum Bill, Zero Allowance, $1.231100 cu ft unit rate
' Monthly Bill, $ 6.85 9.31 14.23 19.15 150.40 1,449.20
' Annual Total, $ 82.20 111.72 170.76 229.80 1,804.80 17,390.40
' 7/00 Rate Option No. 2 $7.30 Minimum Bill, Zero Allowance, $1.311100 cu ft unit rate (winter)
$1.581100 cu ft unit rate (summer)
Monthly Bill (winter) $ 7.30 9.92 15.16 20.40 160.20 1 ,529.00
Monthly Bill (summer), $ 7.30 10.46 16.78 23.10 187.20 1 ,799.00
' Annual Total, $ 87.60 121 .20 188.40 255.60 2,030.40 19,428.00
' $ Increase 5.40 9.48 17.64 25.80 225.60 2,037.60
% Increase 6.6 8.5 10.3 11 .2 12.5 11 .7
38
COST DISTRIBUTION OF WATER RATE PROPOSALS
Bills for Cubic Feet/Month As Shown
Cubic Feet/Month 0 200 Median
Use 1,000 10,000 100,000
600
Typical Meter Size 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 5/8" x 3/4" 1" 3"
1
7/97 Current Rate $6.85 Minimum Bill, Zero Allowance, $1.231100 cu ft unit rate
' Monthly Bill, $ 6.85 9.31 14.23 19.15 150.40 1,449.20
' Annual Total, $ 82.20 111 .72 170.76 229.80 1,804,80 17,390.40
IAddition For Yard Meter $1.75 Minimum Bill
Monthly Bill Yard Meter, $ 1.75 1.75 1.75 1.75 3.50 3.50
' Yard Meter Annual , $ 21.00 21.00 21.00 21.00 42.00 42.00
Total Annual Bill 103.20 132.72 191.76 250.80 1,846.80 17,432.40
Rate Option No. 2 7.30 Minimum Bill Zero Allowance $1.311100 cu ft unit rate (winter)
7/00 Ra Op $
' $1.581100 cu ft unit rate (summer)
Monthly Bill, $ 7.30 10.08 15.64 21 .20 168.20 1 ,609.00
Annual Total, $ 87.60 120.96 187.68 254.40 2,018.40 19,308.00
$ Increase 5.40 9.24 16.92 24.60 213.60 1 ,917.60
% Increase 6.6 8.3 9.9 10.7 11 .8 11 .0
Addition For Yard Meter $2.75 Minimum Bill
Monthly Yard Meter Bill, $ 2.75 2.75 2.75 2.75 6.00 6.00
' Yard Meter Annual , $ 33.00 33.00 33.00 33.00 72.00 72.00
' Total Annual Bill, $ 120.60 154.20 221.40 288.60 2,102.40 19,500.00
$ Increase 17.40 21.48 29.64 37.80 255.60 2,067.60
I % Increase 16.7 16.2 15.5 15.1 13.8 11 .9
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1
July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
' Monthly Charge for Water Used in Cubic Feet
' Minimum Bill
9.00
' 8.00 ---
• 7.64 Proposed
' • 7.30
7.00 • 6.85 -- 6.87 • 6.81 • 6.79
' Ames 6.46
6.31 • •
• 6.15
6.00 • • 5.86
' 5.90 5.75
•:65
5.00 • 5.11
5.50 • 5.25
• 4.55
• 4.20
' 4.00 -- •-4 00--
• 3.36 • 3.50
3.00 --
3.15 •
•2.92
• 2.30 - -- 2.43 •
2.00
1.00
0.00
Median = $5.70
40
July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
200 cubic feet/month
' 12.00
10.46
10.03 9.96 10.08 0 .1
' 10.00 09.90 9.92• 9.31 �J.73 Qp�Luy�
' Ames
8.00 • 8.20 _
• 7.64 • 7.58
•7.02
*6.87 6.83
• 6.46 • 6.24 • 6.20
6.00 •♦ 6 00 * 6.16 -•6.00 - o-6.99- • 5.86
5.90 • 5.50
' • 5.11 J 78
• 4.48 04.55
' 4.00 - •4.20
' • 3.36
• 2.92 2.43
•
' 2.00 - - - --
0.00
' Median = $6.08
41
July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
600 cubic feet/month
25.00 - - -- - --
• 22.64
20.00
• 17.96
• 17.0716.78
16.73 �L1
• ♦ • 16.48 •
16.40 • 15.64
15.00 - - - - - - - - - 15.16
-- -- - - --
• 14.23 0 . 2 w
' Ames • 13.04
11.42 • 12.20 11.79
• • 11.76
' • 10.85 • 10.48
10.00 8.84 • 9.65 49:84 --- -- •9.63
• • 8.76 • • 900 • 899 • • 9.15
8.99 . . 8.72 • 8.23
• 7.64
5.00 - - - - --
4.02 •
0.00 - -- - -
' Median = $10.16
1
42
' July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
' Monthly Charge for Water Used in Cubic Feet
' 1,000 cubic feet/month
' 40.00
35.00
•35.32
30.00 --
' • 25.88 • 26.16
25.00 • 24.25 • 24.60 OD.2(S)
• 22.93 •23.10
' 21.37• • 21.20
20.00 Ames _ 20.40__-_ •
• 19.15 •
•' 18.28 • 18.40 W 2(Wl• 17.45 • 17.36
• 16.08 • 16.32
15.00' 14.78
14.60 • --- 14.59 • 13.75
• 13.20 ♦ 12.87 • 12.54
• 11.25 • 11.15
' 10.00
6.14
5.00
0.00 - ------- -
' Median = $16.20
43
July 1999 Residential Water Rate Survey
' for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
10,000 cubic feet/month
I
300.00
I
' • 260.28
250.00 - - --- -- -- - - -
' • 231.74
214.42
200.00 - - -- -- - ---- _ -- -- - --- -
• 184.38 • 187.20
' 174.77• •175.20. 179.96
• 162.12 157.90 • 168.20
• 160.80 160.20
150.00 50.40 Ames -48. 152.18 - - _ - ----
• 136.56
•130.10
112.90
• 111.30 • rl 10.55 101.22' 99.20 100.00 - - - -- -- - • • - * ---- - -
• 94.10 97.51
• 85.52 *90.13
' • 67.55
52.51
' 50.00 -- -
• 44.57
I
' 0.00
' Median = $142.50
' 44
' July 1999 Residential Water Rate Survey
for Iowa Cities over 10,000 Population
Monthly Charge for Water Used in Cubic Feet
' 100,000 cubic feet/month
2,500.00
• 2,346.91
• 2,290.50
•
2,144.92
2,000.00 _ - -- - - - -- - - -
Op• 2(S)
' • 1,799.00
• 1,754.27
• 1,620.12 1,609.00
1,500.00
1,552.90 • •1,550.78 • 1,529.00
- -- -- - -
• 1,449.20 Op 2(wl
Ames 01,345.20
1,266.04 •
1,203.38• 1,191.85 1,295.30
•
1,078.80• •1 087.30
1,000.00 - •� n� �n _ _
• • 903.57 878.56
906.4 • • •817.93
• 802.4
• 676.04 781.22 733.04
• 598.49
500.00 •476.22 438.81 •
355.87
0.00
Median = $1,083.05
45
0 71*OAJ
ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF
AMES, IOWA, BY REPEALING SUBSECTIONS 28.201(1), (2), (3) and (4)
THEREOF AND RE-ENACTING THE SAME FOR THE PURPOSE OF
REVISING THE WATER RATES AND CHARGES;REPEALING ANY AND
ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE
EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN EFFECTIVE
DATE.
BE IT ENACTED,by the City Council for the City of Ames,Iowa,that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by
repealing Subsections 28.201(l),(2),(3)and(4)and re-enacting the same as follows:
"Sec 28.201. WATER RATES AND CHARGES.
The rates and charges for water supplied to consumers by the water utility of the city,to be
billed on or after July 1,2000,are as follows:
(1) Rate per one hundred cubic feet. For all water metered beginning with the first
cubic foot the net rate of charge shall be as follows:
(i) for bills mailed on or between July 1 and October 31 (summer period)
$1.58 per 100 cubic feet.
(ii) for bills mailed on or between November 1 and June 30(winter period):
$1.31 per 100 cubic feet.
Where a battery of meters is installed in parallel,serving the same function as a compound
meter, fed by a single service line from the main, and collected into a single header within the
building,the combined readings of these several meters shall be used in computing the amount to be
charged.
It shall be the duty of the director of water and water pollution control to review and
recommend to the city council such revision of the rates and charges established and set out in this
division as is deemed prudent not later than two(2)years from their effective date.
(2) Minimum charges. For each monthly billing,each customer shall be charged a
minimum monthly charge based on the size of the water meter(s) at each location. The minimum
monthly charge may be prorated,based on a 30-day billing period,for the customer's initial and/or
final bills,provided that in no case shall the minimum monthly charge be less than three dollars and
fifty cents($3.50). The minimum monthly charge for each water meter location shall be as follows:
Size of Meter MininiumMonthlyCharge
5/8 inch or 5/8"x 3/;. .......................................................................... $ 7.30
3/4 inch ........................................................................... 14.60
1 inch ........................................................................... 29.20
1-1/2 inch ........................................................................... 58.40
2 inch ........................................................................... 116.80
2 inch,battery of 2 ........................................................................... 226.30
2 inch,battery of 3 ........................................................................... 335.80
3 inch ........................................................................... 233.60
4 inch ........................................................................... 394.20
6 inch ........................................................................... 657.00
8 inch ........................................................................... 1,314.00
10 inch ........................................................................... 1,971.00
(3) Multiple dwellings—Mobile home parks. Multiple dwellings, including mobile
home parks,may be serviced from a single water meter.
However,there shall be a surcharge added to the water rates set forth above,to be calculated
as follows:
For a 5/8 inch meter serving 2 or more dwelling units ........................ 2.1 0/month/unit
For a 3/4 inch meter serving 4 or more dwelling units .......................... 2.10/month/unit
For a 1 inch meter serving 8 or more dwelling units ........................... 2.10/month/unit
For a 1-1/2 inch meter serving 16 or more dwelling units .................. 2.1 0/month/unit
For a 2 inch meter serving 30 or more dwelling units ........................ 63.00/month
for the first 30 units plus$3.30/month per unit for each
additional unit in excess of 30 units
For a 3 inch or larger meter serving any number of dwelling units ...... 2.90/month/unit"
(4) Yard meter minimum charges. For each monthly billing after July 1,2000 each
customer shall be charged a minimum monthly charge based on the size of the yard meter(s)at each
location. The minimum monthly charge for each yard meter location shall be as follows:
Size of Meter Minimum Monthly Charged
5/8 inch or 518"x 3/4" .......................................................................... $ 2.75
3/4 inch .......................................................................... 4.25
1 inch ........................................................................... 6.00
1-1/2 inch ........................................................................... 8.25
2 inch ........................................................................... 11.00
3 inch ........................................................................... 14.25
4 inch ........................................................................... 17.75
6 inch ........................................................................... 21.25
8 inch ........................................................................... 24.75
10 inch. ........................................................................... 28.25
For the purposes of this section,a dwelling unit is defined as a self-contained living facility
(i.e.,including kitchen and bath)such as an apartment or a licensed independent mobile home space.
Section Two. All ordinances or parts of ordinances in conflict herewith are hereby repealed
to the extent of such conflict,if any.
Section Three. This ordinance shall be in full force and effect from and after its passage and
publication as required by law.
Passed this day of 12000.
Diane R.Voss,City Clerk Ted Tedesco,Mayor
0572