Resolution Resolution to Adopt Rates and Fees for Village of Paw Paw Water System Beginning January 1, 2014

Transcription

1 Village of Paw Paw, Van Buren County Resolution Resolution to Adopt Rates and Fees for Village of Paw Paw Water System Beginning January 1, 2014 WHEREAS, the Village of Paw Paw is required to operate a municipal water (pump, treat and distribute) system; and WHEREAS, the Village Code of Ordinances, 38-32, empowers the Village Council to establish appropriate rates and fees that provide for stable operation of the municipal water system; and WHEREAS, the Village Council is authorized under the Village Code of Ordinances, 2-231, to establish rates and fees by resolution of the Village Council; and WHEREAS, the Village Council has reviewed the Water Fund and the needs of the Water system to determine its financial status and to plan for the long term stability of the Fund and system; and WHEREAS, the Village maintains a variety of rates and fees in an attempt to cover costs and secure adequate funds for long term stable operation of the water collection and treatment system; and WHEREAS, current rates and fees include: Ready-to-Serve (RTS) fee; a per account fee based on incoming water meter size, covering Debt Service and Operation and Maintenance of the system - Commodity Charge; a per gallon charge based on per- 1,000-gallons of water customers take out of the distribution system - Report, Inspection, Permit, and Delinquent Payment fees; based on costs for special services requested by customers - WHEREAS, the customers have enjoyed eight (8) consecutive years of service without an increase in the Ready-to-Serve fee which was last established in 2005; and WHEREAS, the customers have enjoyed eight (8) consecutive years of service without an increase in the commodity fee as it was last established in 2005; and Page 1 of 5

2 WHEREAS, the customers have enjoyed eight (8) consecutive years of service without an increase Report, Permit, Inspection and Delinquent Payment fees as all were last established in 2005; and WHEREAS, the current commodity rate, $1.49 per 1,000 gallons, is extremely low; and WHEREAS, current water rates and fees have not kept pace with usual and typical increases for goods, services, and labor required for the stable operation of the Water system; and WHEREAS, the Village Council has determined the Water Fund shall maintain a Fund Balance (on hand unrestricted cash reserves) to meet three criterion that provide for stable operation of the municipal water system; and WHEREAS, the three criterion are defined as: 1) A cash amount to cover 50% of the lost revenues should the Water fund lose its top five customers. 2) An amount equal to fund typical annual emergency repairs over the last several years. 3) An amount equal to what may be a 10% match for grant or bond funding for capital improvement projects. WHEREAS, the Village Council has determined the Water Fund does not currently meet all three criterion and is in fact operating in a deficit (-$190,000 as of ); and WHEREAS, the Village Council has determined returning the Water fund to a stable financial condition will require additional revenue collected through rate and fee increases; and WHEREAS, the Village Council desires to spread the increases over a six (6) year time period to lessen the impact on customers; and WHEREAS, the Village Council desires to allow time for customers to prepare for the rate increases by establishing new rates and fees shall take effect January 1, WHERAS, with this plan, customers may expect five year ( inclusive) of no commodity increases. NOW, THEREFORE, BE IT RESOLVED that the Village Council of the Village of Paw Paw hereby adopts a rate and fee schedule designed to be begin with the January 1, 2014 billing cycle and with scheduled changes each January billing cycle for the following calendar years of 2015, 2016, 2017, 2018, and Beginning with the January 1, 2014 billing cycle the schedule of rates and fees, implemented the first of each calendar year is established as follows: YEAR 1 January 1, 2014: with current rate in ( ) s for all customers; rates and fees in $-Dollars; Non-residents 150% Page 2 of 5

3 Less than (8.87) 4.98 (4.78) (13.65) (15.09) 8.32 (8.12) (23.21) 1-1/ (24.84) (13.38) (38.22) (37.26) (20.07) (57.33) (75.42) (40.61) (116.03) (131.31) (70.71) (202.02) Non-residents - 150% of these Commodity Charge covering the amount of Water customers put into the collection system; Residents $2.75 per 1,000 gallons; Non-residents 150% or $4.125 The Delinquent Payment for Services (Lien); DPS, Lien; Residential (50.00) DPS, Lien; Commercial Less than 2 meter (200.00) DPS, Lien; Commercial 2 & greater meter (200.00) YEAR 2 - January 1, 2015: Only changes from prior year are indicated Less than / YEAR 3 - January 1, 2016: Less than / Page 3 of 5

4 YEAR 4 - January 1, 2017: Less than / YEAR 5 - January 1, 2018: Less than / YEAR 6 - January 1, 2019: Less than / RECORD OF ADOPTION Page 4 of 5

5 Motion by to adopt / reject (strike one) the resolution. with support from ROLL CALL: AYES: Roman Plaszczak, Wayne Wilhelmi, Mary McIntosh, Donne Rohr, Marcos Flores, Eric Larcinese and Michael Pioch NAYS: None ABSENT: None Resolution declared adopted/rejected (strike one) this 10 th day of June CERTIFICATION I, Christopher Tapper, the duly appointed Clerk of the Village of Paw, do hereby certify that the above is a true and exact copy of a Resolution, passed by the Paw Paw Village Council, on the 10 th day of June 2013, the original of which is on file at the Paw Paw Village Hall. Christopher Tapper Christopher Tapper, Clerk Page 5 of 5