AGENDA 9-01-2015

S T A F F  R E P O R T

For the business Meeting of: September 1, 2015 August 20, 2015

TO: Douglas Adkins, City Manager

FROM: Scott Tadych, Public Works & Utilities Director

PURPOSE To adopt legislation approving a 10% user rate increase in the sewer fund to be used solely for sewer infrastructure improvements.

BACKGROUND and FINDINGS

 

Sewer rates are typically reviewed with City Council every couple of years taking in consideration operational, maintenance, and capital improvement needs of the sewer system. The rates were last discussed in 2013 with a rate increase of 10% effective January 1st of 2014.

 

Middletown’s water and sewer rates consistently rank in the lower half of communities in the annual Oakwood Water and Sewer Rate Survey for southwest Ohio. We are currently 25th out of 63 communities surveyed for lowest sewer rates.

 

A significant factor affecting future sewer rate increases are the need for major capital improvements to the system. Middletown, like many other older cities across the nation, has combined sewers that drain both rain water and sanitary sewage. The combined sewer flow is transported to the wastewater treatment plant during dry periods. When there are significant rain events the combined sewers are overloaded with rain water and discharge at several points along the river. The City is in active discussions with the EPA on a solution to address combined sewer overflows. Multiple alternatives are being evaluated to reduce the number of overflows. The alternatives range is cost from approximately $80 to $250 million over a 25 year period. During this same time frame major rehabilitation will be necessary for our sewer collection system and wastewater treatment plant. As you may recall there have been multiple sewer collapses over the past several years. This is just the tip of the iceberg. Nearly half of the City’s sewer system is 50 years old or older and will require extensive rehabilitation going forward. $142 million is needed to repair the sewer system over the next 25 years. An additional $68 million will be needed for improvements at the wastewater treatment plant as well. Most the major components of the plant were installed in the mid-50’s SEWER USER RATE INCREASE – INFRASTRUCTURE FEE All told the City is looking at $290 to $460 million in future improvements to the system. Funding options for these improvements are limited mostly to user fees therefore it is necessary to adjust sewer rates accordingly.

 

ALTERNATIVES

Do not create the infrastructure fee.

FINANCIAL IMPACT

This fee will cost a typical residential user an additional $2.11 per month for sewer. The infrastructure fee will be a separate line item on individual utility bills. The 10% infrastructure fee will generate approximately $850,000 per year. EMERGENCY/NON-EMERGENCY

Non-Emergency

ATTACHMENTS

Sewer Rate Survey

Why is not the rate increase VOTED upon!!!!

The city has these cash cow monopolies and just screws the residents. Taxes on property in  Middletown is HIGHER than a $1 Mm home in Scottsdale Az, for a $125 house in town.

The city provides NO amenities, and raises rates to gain money to float for other needs, to borrow from their internal bank.  Middletown just continues to PRICE and GOUGE itself out of the market.

Where's the news? What was the July Moody rating- up or down? Did Doug Adkins get his annual bonus? What's the latest on the drug efforts? There has been no change at all in Donham, just the continuing pattern of sticking it to those hanging around with the anchor of a house in a city falling apart.

It just isn't worth it.