HomeMy WebLinkAboutO-1759ORDINANCE NO. 1759
AN ORDINANCE TO ESTABLISH WATER AND WASTEWATER RATES FOR
ALL CUSTOMERS OF THE CITY OF FAIRH OP E WATER AND WASTEWATER
SYSTEMS AN D TO REPEAL AND REPLACE ORDINANC E 0. 1684.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE,
ALAB AMA, as follows:
ARTICLE III. WATER
AMEND -Sec. 21-38 RATE-SCHEDULE
(a) Water rates schedule:
• Wl Inside the City Limits:
• Minimum Charge $12.03
• Plus , each 1,000 gallons $2 .39 (1,000 -6,999)
• Usage greater than 7,000 ga llon s $3.39
• Plus LCA and Tax
• W2 & W3 Outside the City Limits
• Minimum Charge $15.48
• Plus, each 1,000 gallons $3.57 (1,000 -6,999)
• Usage greater than 7,000 gallons $4.57
• Plus LCA and Tax
• IRRl Inside the City Limits:
• Minimum Charge $12.03
• Plus, each 1,000 gallons $3.39
• Plus LCA and Tax
• IRR2 & IRR3 Outside the City Limits:
• Minimum Charge $15 .48
• Plus, each 1,000 gallons $4.5 7
• Plus LCA and Tax
(b) Labor Cost Adjustment (LCA) Factor. The base rates set forth above may be adjusted
periodically to account for permanent changes in labor-related revenue requirements ( e.g., salaries
and wages, pensions and benefits , etc.) that come about as a result of budget actions taken by the
City Council for a fiscal year. Such adjustment, when approved by the City Council , shall be
calculated as follows:
• LCA = 1 + ((TLCB -TLCPY) / BRRR)
• Where: TLCB = The total annual labor cost, in dollars , that is reflected in the
electric utility budget for th e coming fiscal year, as approved by the Board .
• TLCPY = The total actual annual labor cost, in dollars, that was incurred by the
electric utility for the prior fiscal year.
• BRRR = The total estimated revenue requirement, in dollars , that is being
recovered in current base rates.
• The LCA factor so calculated shall be applied to each retail rate set forth above
such that it will result in new base wastewater (sewer) rates. Thus, when app lied , a
new TLC PY and BRRR will be established for future LCA calcul ations. The
following accounts shall be used in the determination of total labor costs as
reflected in TLCB and TLCPY:
Ordinance No. 1759
Page -2-
• Salaries
• Payroll Taxes
• Retirement Expense
• Insurance : Emp loyees Gro up
• Employee Ret irees Medical Insuran ce
• Workers Compensation Insurance
• ote : the listing of accounts used to determine TLCB and TLCPY may be
modified from time to time as prescribed by the City's accounting and budget
procedures .
ARTI CLE IV. WASTEWATER (SEWE R)
AMEND -Sec . 2 1-5 4 RA TE-SCHE D ULE
(a) Wastewater (sewer) rates sched ule :
• S 1 Inside the City Limits :
• Minimum Charge $20.00
• Plus , each 1,000 gallons $5 .00
• Plus LCA
• S2 & S3 Outside the City Limits
• M inim um Charge $22 .50
• Pl u s , each 1,000 gallons $6.00
• Plus LCA
Any household that does not have City of Fairhope water serv ice will be charg ed a flat rate :
•
•
Inside the City Limits $55 .00
Outside the City Limits $70 .00
(b) Labor Cost Adjustment (LCA) Factor. The base rates set forth above may be adj uste d
periodically to account for permanent changes in labor-relate d revenue requ irements (e.g., sa laries
an d wages , pensions and benefits, etc.) that come about as a result of bu dget actions taken by the
City Council for a fiscal year. Such adjustment, when approved by the City Council , shall be
calculated as follows :
• LCA = 1 + ((TLCB -TLCPY) / BRRR)
• Where: TLCB = The total annual labor cost, in dollars, that is reflected in the
electric util ity budget for the coming fiscal year, as a pp roved by the Board .
• TLCPY = The total actual annual labor cos t, in do ll ar s, that was incu rre d b y th e
electric utility for the prior fiscal year.
• BRRR = The total estimated revenue requirement, m dollars, that is being
recovered in current base rates .
• The LCA factor so calcu lated shall be applied to each retail rate set forth above
such that it will result in new base wastewater (sewer) rates . Thus, when applied , a
new TLC PY and BRRR will be estab lished for future LCA calculations . The
following accounts sha ll be used in the determination of total la bor costs as
reflected in TLCB and TLCPY:
• Salaries
• P ayro ll Taxes
• Retiremen t Ex pense
• Insurance : E mp loyees Grou p
• Employee Retirees Medica l Insurance
• Workers Compensation Insurance
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Ordinance o . 1759
Page -3-
• Note : the listin g of accounts used to determine TLCB and TLCPY may be
modified from time to time as prescribed by the City's accounting and budget
procedures .
Severability . The sections , paragraphs , sentences , clauses and phrases of this ordinance are
se verable , and if any phrase , clause , sentence , paragraph or section of this ordinance shall be
declared unconstitutional by a court of competent jurisdiction, then such ruling shall not affect any
other paragraphs and sections , since the same would have been enacted by the municipality council
without the incorporation of any such unconstitutional phrase , clause , sentence , paragraph or section .
Effective Date . This ordinance shall take effect on November 1, 2022 upon its due adoption and
publication as required by law .
ADOPTED THIS THE 10TH DAY OF OCTOBER, 2022
Atte st :
ADOPTED THIS THE 10TH DA