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HomeMy Public PortalAboutRES-CC-2014-28RESOLUTION # 28-2014 A RESOLUTION ADOPTING CHANGES IN THE CITY OF MOAB SEWER RATE STRUCTURE WHEREAS, the City of Moab is planning for an upgrade and expansion to the City's Wastewater Treatment Plant; and WHEREAS, the current sewer rate will not provide sufficient revenues to pay debt service on loans obtained from the State of Utah that will be needed to pay for the upgrade and expansion; and WHEREAS, in order to receive low interest loans or grants from the State of Utah, the City must show that sewer system users pay a reasonable monthly charge for sewer services, in an amount to cover system costs, but not to exceed 1.4% of Median Adjusted Gross Household Income (MAGI); and WHEREAS, the City of Moab's MAGI is $32,620, based on the 2010 census; and WHEREAS, the City's current average residential sewer rate is $15.45, or 0.57% of MAGI, which is considered too low by the state for the City to qualify to receive grants or the lowest interest loans; and WHEREAS, the sewer rate should be raised progressively over the next several years to bring the rates closer to 1.4% of MAGI; and WHEREAS, the proposed rate structure would raise the average residential sewer rate to $16.90, which is an approximate 10% increase over the current average residential sewer rate. NOW, THEREFORE BE IT RESOLVED, that the following sewer rates structure shall be adopted by the City of Moab: A. Standard Rates Account Type 1. Single Family Residential Dwellings 2. Multiple Unit Residential Complexes 3. Commercial Establishments Monthly Rate $10.00 and $1.15 per thousand gallons of the average monthly winter water usage rate $10.00 per unit and $1.15 per thousand gallons of the average winter water usage rate $13.25 plus $1.30 per thousand gallons of water used Resolution #28-2014 June 10, 2014 4. Governmental Entities and Institutions $13.25 and $1.30 per thousand gallons of water used 5. Single Family Dwellings Not Connected to $16.90 the City Water System 6. Multiple Unit Residential Complexes Not $16.90 per unit Connected to the City Water System 7. Commercial Establishments Not $64.00 Connected to the City Water System 8. Governmental Entities and Institutions Not $50.00 Connected to the City Water System 9. Spanish Valley Water and Sewer District Sewer Hook-up/Connection Type Monthly Rate Residential (per connection) $7.70 Small Commercial (per connection) $8.85 Large Commercial (per connection) $15.40 Trailer Spaces (per space) $4.15 Motels (per room) $1.75 B. Individual Rate Calculation In cases in which the City Manager determines that the standard rate or formula as defined in this chapter produces an inaccurate or inappropriate charge, the City Manager may calculate an individual sewer rate based on other available information, providing that the rates calculated must be equitable with respect to other users in the system. PASSED AND ADOPTED in open Council by a majority vote of the Governing Body of the City of Moab this 10lb day of June, A.D., 2014. This ordinance shall take effect on July 1, 2014. Rates for Spanish Valley Water and Sewer District will take effect August 1, 2014. David L. Sakrison Mayor Ar1EST: Racket g- StQrta City of Resolution #28-2014 June 10, 2014