CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass the Ordinance amending Title 8, Chapter 2, Article C, Section 3, and Section 5 of the Municipal Code - Water User Charges, Wastewater Service User Charges and Wastewater Quality Surcharges. (Requires six positive votes)
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DEPARTMENT: Water Utilities
SUBMITTED BY: Jim Holzapfel, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Naperville's Water Utility periodically conducts a cost of service rate study to ensure the rates and fees charged to its customers recover the costs associated with providing water and wastewater utility services to the community and to fairly distribute the charges and fees amongst the various customer classes.
In April 2017, staff completed a cost of service rate study. The outcomes of the rate study intended to:
* Ensure the continued funding of operations
* Increase the funding of the capital improvement program for the replacement of critical, aging water and sanitary sewer infrastructure
* Implement a graduated phosphorous surcharge and direct the repayment of the loan to the Electric Utility to fund 50% of the improvements to the Springbrook Water Reclamation Center (estimated at $50 million).
Through negotiations with the IEPA, the IEPA will allow the City up to 11 years from date of permit issuance to complete the phosphorus removal improvements with construction commencing approximately 8 years from the date of permit issuance. As of now, the IEPA has not issued the City of Naperville's NPDES permit.
In April of 2017, City Council approved a new five-year utility rate schedule to fund the previously noted goals. The new rates went into effect on May 1, 2017, with annual increases on January 1 of each year from 2018 to 2021.
DISCUSSION:
Through budget monitoring and the preparation of the 2018 budgets, staff observed the utility's actual revenues and the expenses differed significantly from the rate study's revenue and expendi...
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