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HomeMy Public PortalAboutRES-CC-2013-10RESOLUTION # 10-2013 A RESOLUTION ADOPTING CHANGES IN THE CITY OF MOAB SEWER RATE STRUCTURE WHEREAS, the City of Moab has not increased sewer rate fees since 1995; and 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 needed upgrade and expansion; and WHEREAS, the State of Utah requires that sewer rates must fall within a range of affordability in order to qualify for financial assistance from the State; and WHEREAS, the State of Utah standard for affordability of sewer service indicates that the annual cost of sewer service should not 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 $14.65, or 0.05% of MAGI, which is considered too low by the state for the City to qualify for financial assistance in the form of a loan; 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 $15.45, which is an approximate 5.5% 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 Monthly Rate 1. Single Family Residential Dwellings 2. Multiple Unit Residential Complexes $9.10 and $1.05 per thousand gallons of the average monthly winter water usage rate $9.10 per unit and $1.00 per thousand gallons of the average winter water usage rate Resolution #10-2013 June 25, 2013 3. Commercial Establishments $12.00 plus $1.20 per thousand gallons of water used 4. Governmental Entities and Institutions $12.00 and $1.20 per thousand gallons of water used 5. Single Family Dwellings Not Connected to $15.45 the City Water System 6. Multiple Unit Residential Complexes Not $15.45 per unit Connected to the City Water System 7. Commercial Establishments Not $58.00 Connected to the City Water System 8. Governmental Entities and Institutions Not $46.00 Connected to the City Water System 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 25t—" day of June, A.D., 2013. David L. Sakrison Mayor ATTEST: Rachel E. Stenta City of Moab Resolution #10-2013 June 25, 2013