HomeMy WebLinkAboutO-1791ORDINA CE N O . 179 1
A ORDINANCE T O ESTAB L ISH WATER AND WASTEWATER RATES FOR
ALL CUSTO MERS OF THE CITY OF FA IRHOPE WATER AN D WASTEWATER
SYSTEMS AN D T O RE PEAL AN D RE PLACE ORDINANCE 0 . 1759.
BE IT ORD AINED BY THE GOVERNING BOD Y OF THE CITY OF FAIRH OPE,
ALABAMA, as follows:
ARTICLE II I. WATE R
AME D -Sec . 21 -38 RATE -SCHEDULE
(a) Water rates schedule:
• Wl Inside the City Limits:
• Minimum Charge $14.00
• Plu s, each 1,000 gallons $2.60 (1,000 -6,999)
• Usage 7,000 gallons and greater $3.60
• Plu s LCA and Tax
• W2 & W3 Outside the City Limits
• Minimum Charge $17.50
• Plus, each 1,000 gallons $3.80 (1,000 -6,999)
• Usage 7 ,000 gallons and greater $4.85
• Plus LCA and Tax
• IRRl Inside the City Limits:
• Minimum Charge $14.00
• Plus , each 1,000 ga ll ons $3 .60
• Plu s LCA and Tax
• IRR2 & IRR3 Outside the City Limits:
• Minimum Charge $17 .50
• Plu s, each 1,000 gallons $4.85
• Plu s LCA and Tax
(b) Labor Cost Adjustment (LCA) Factor. The base rates set forth above may be adjusted
periodicall y to account for permanent changes in labor-related revenue requirements (e.g., salaries
and wages, pension s, and benefits , etc.) that come about as a re su lt 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 = I + ((TLCB -TLCPY) I BRRR)
• Where: TLCB = The total annual labor cost, in dollars , that is reflected in the
electric utility bud get for the coming fiscal year, as approved by the Board.
• TLCPY = The total actual annual labor cost, in do ll ars, 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 sha ll be applied to each retail rate se t forth above
such that it wi ll re ult in new base wastewater (sewer) rates. Thus, when applied, a
new TLC PY and BRRR will be established for future LCA calculations. The
following accounts shall be u sed in the determination of total labor costs as
reflected in TLCB an d TLCPY:
Ordinance No . 1791
Page -2-
• Salaries
• Payroll Taxes
• Retirement Expense
• Insurance: Em plo yees Group
• Employee Retirees Medical In surance
• Workers Compensation Insurance
• Note: 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 bud get
procedures .
ARTICLE IV. WASTEWATER (SEWER)
AME D -Sec. 21-54 RATE -SCHEDULE
(a) Wastewater (sewer) rates schedule:
• SI Inside the City Li mits :
• Minimum Charge $22.00
• Plus , each 1,000 gallons $5.30
• Plus LCA
■ S2 & S3 Outside the City Limits
• Minimum Charge $24.50
• Plus , each 1,000 gallons 6.40
• Plus LCA
Any household that does not h ave City of Fairhop e water service wi ll be charged a flat rate :
• Inside the City Limits $58.30
• Outside the City Lim its $74.20
(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 abo ut 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) I BRRR)
• Where : TLCB = The total annua l labor cost, in dollars , that is reflected in the
electric utility budget for the coming fiscal year, as approved by the Board .
• TLCPY = The total actual an nu a l 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
reco vered in current base rates.
• The LCA factor so calculated shall be applied to each retail rate set forth above
such that it wi ll result in new base wastewater (sewer) rates. Thus, when applied , a
new TLC PY and BRRR will be established for future LCA calculations. The
following accounts shall be used in the determination of tota l labor costs as
reflected in TLCB and TLCPY :
•
•
•
•
•
•
Salaries
Payroll Taxes
Retirement Expense
Insurance: Employees Group
Emp loyee Retirees Medical Insurance
Workers Compensation Insurance
Ordinance No. 1791
Page -3-
• Note: the listin g of accounts used to detennine 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
severable, and if any phrase, clause, se ntence , paragraph or section of this ordinance shall be
declared uncon stitutional by a court of competent jurisdiction, then such ruling shall not affect any
other paragraphs and sections, si nc e 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 1, 2024, upon its due adoption and
publication as required by law.
ADOPTED THIS THE
Corey Martin, Council Pre sident
Attest:
e~ City Cl
ADOPTED THIS THE 26TH DAY OF FEBRUARY 2024