HomeMy Public PortalAboutRES-CC-2017-24RESOLUTION # 24-2017
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, to further this goal the City commissioned a Sewer Rate Study by Bowen Collins &
Associates that was completed in February 2017 and is attached to this Resolution; 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 $32,965, based on the 2010 census; and
WHEREAS, the City's current average residential sewer rate is $21.88, or 0.66% 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 Study recommends that the sewer rates 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 $26.26,
which is an approximate 20% increase over the current average residential sewer rate.
NOW, THEREFORE BE IT RESOLVED, that the Sewer Rate Study is adopted and incorporated
by reference and the following five year sewer rates structure shall be adopted by the City of
Moab effective July 1, 2017.
A. Standard Rates
Monthly Base Rate
Existing
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$14.40
$17.28
$20.74
$23.22
$24.27
$24.27
Commercial/Govemmental
$19.10
$22.92
$27.50
$30.80
$32.19
$32.19
Volume Rate
Exists. g
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$1.70
$2.04
$2.45
$2.74
$2.87
$2.87
Commercial/Governmental
$1.85
$2.22
$2.66
$2.98
$3.12
$3.12
Average Monthly Residential Bill
B. Septage Rates
$21.88
$26.26
$31.51
$35.29 I $36.88
$36.88
Item
FYE
2017
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Recommended Septage
$0.090
$0.180
$0.180
$0.190
$0.190
$0.190
Rate ($/gal)
C. Wholesale wastewater service charges to Spanish Valley Water and Sewer Improvement District
(SVW&SID) shall in accordance with the following table:
Wholesale Charges from Moab to SVW&SID for Wastewater Service
Item
FYE
2017
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Monthly Flow O&M Cost/ERU
$4.05
$4.12
$4.18
$4.14
$4.19
$4.25
Monthly Treatment O&M
$4.66
$5.66
$5.75
$5.78
$5.87
$5.98
Cost/ERU
Annual Loan Payment
$0
$102,207
$102,207
$102,207
$102,207
$102,207
Impact Fee Credit Offset/New
$362.38
$331.24
$302.39
$277.78
$254.87
$233.51
ERU/Year
D. 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 4'h day of April, A.D., 2017. This ordinance shall take effect on July 1, 2017. Rates for
Spanish Valley Water and Sewer District will take effect July 1, 2017.
David L. Sakrison
Mayor _
ST:
Rachel E. Stenta
City Recorde,-
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