HomeMy WebLinkAboutO-1816ORDINANCE NO : 181 6
AN ORD INANCE TO ESTABLISH WATE R AND WAS TEWATER (SEWE R)
RATES FOR ALL CUST OME RS OF THE CITY OF FA IRHOPE WATE R
AN D WASTEWATER SYSTEMS AN D TO REP EAL ORD INANCE N O.1791
BE IT ORD AINE D BY THE GOVERNING BOD Y OF THE CITY OF
FAI RH OPE, ALABAMA , as follows:
ARTICLE III . WATE R
AMEND-Se c. 21-3 8 RATE-SCHEDULE
(a) Water rates schedule :
Beginning 01 /01 /2 025
• Wl Inside the City Limits:
• Minimum Charge $14.75
• Plus , each 1,000 gallons $3.60 (1 ,000 - 6,999)
• Usage 7,000 gallons and greater $4.60
• Plu s LCA and Tax
• W2 & W3 Outside the City Limits
• Minimum Charge $17 .50
• Plus , each 1,000 gallons $4.30 (1 ,000 - 6,999)
• Usage 7,000 gallons and greater $5 .35
• Plu s LCA and Tax
• IRRl Inside the City Limits :
• Minimum Charge $14 .75
• Plus , each 1,000 gallons $4 .60
• Plus LCA and Tax
• IRR2 & IRR3 Outside the City Limits:
• Minimum Charge $17 .50
• Plus , each 1,000 gallons $5 .35
• Plus LCA and Tax
Beginning 01 /01/2026 and until replaced by the City Council
• Wl Inside the City Limits:
• Minimum Charge $15 .50
• Plus , each 1,000 gallons $4.60 (1 ,000 -6,999)
• Usage 7,000 gallons and greater $5 .60
• Plus LCA and Tax
• W2 & W3 Outside the City Limits
• Minimum Charge $17 .50
• Plus , each 1,000 gallons $4.80 (1 ,000 -6,999)
• Usage 7,000 gallons and greater $5 .85
• Plus LCA and Tax
Ordinance No. 1816
Page -2-
• IRRl Inside the City Limits:
• Minimum Charge $15 .50
• Plus , each 1,000 gallons $5.60
• Plus LCA and Tax
• IRR2 & IRR3 Outside the City Limits:
• Minimum Charge $17 .50
• Plus , each 1,000 gallons $5.85
• 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) I BRRR)
• Where : TLCB = The total annual 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 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 reco vered 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 applied , a new TLC PY and BRRR will be established for future
LCA calculations. The following accounts shall be used in the
determination of total labor costs as reflected in TLCB and TLCPY:
• Salaries
• Payroll Taxes
• Retirement Expense
• Insurance : Employees Group
• Employee Retirement/ Medical Insurance
•Casualty/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
budget procedures.
(c) A $30.00 bad check charge shall be assessed for a check, draft, negotiable order of
withdrawal , or like instrument drawn on a bank or other depository institution given by
any person in full or partial payment of City services if the instrument is not paid or is
dishonored by the institution, charge and collect, through regular billing procedure or
otherwise, from whom the instrument was received pursuant to Code of Alabama,
Section 8-8-15.
Ordinance No. 1816
Page -3-
AR TICLE IV. WASTEWATER (SEWE R)
AMEND -Sec. 21-54 RA TE -SCHE DULE
(a) Wastewater (sewer) rates schedule:
Beginning 01 /01 /2 025
• S 1 Inside the City Limits :
• Minimum Charge $26.0 0
• Plu s, each 1,000 ga llon s $6.80
• Plu s LCA
■ S2 & S3 Outsid e the City Limits
• Minimum Charge $28.50
• Plu s, each 1,000 ga ll ons $7.90
• Plu s LCA
Any household that does not h ave City of Fairhope water service will be charged a
flat rate:
• Inside the City Limits
■ Out si de th e City Limits
$62 .30
$78.20
Beginning 01 /01 /2026 and until replaced by the City Council
■ S 1 Inside the City Limits :
• Minimum Charge $30.00
• Plu s, each 1,000 ga ll ons $8 .30
• Plu s LCA
■ S2 & S3 Outside th e City Limits
• Minimum Charge 32.50
• Plu s, each 1,000 ga ll ons $9.40
• Plu s LCA
Any household th at does not have City of Fairhope water service will be charged a
flat rate :
• Inside the City Limits
■ Outsi de th e City Limits
$66 .30
$82.20
(b) Labor Cost Adjustment (LCA) Factor. The base rates set forth above may be
adjusted periodically to accoun t 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 , sh all b e calculated as follows :
o LCA = 1 + ((TLCB -TLCPY) I BRRR)
o Where: TLCB = The total annual labor cost, in dollars , that is reflected
in the electric utility budget for the coming fiscal year, as approved by
th e Board .
o TLCPY = The total actual annual labor cost, in dollars , that was incurred
b y the electric utility for the prior fi scal year.
Ordinance o. 1816
Page -4-
o BRRR = The total estimated revenue requirement, in dollars , that is
being recovered in current ba e rates.
o The LCA factor so calculated hall 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 wi ll be established for future
LCA calculations. The following accounts shall be used in the
determination of total labor costs as reflected in TLCB and TLCPY:
■ Salarie s
■ Payroll Taxes
■ Retirem ent Expense
■ Insurance : Employees Group
• Empl oyee Retiremen Medical Insurance
• Casualty/ Workers Compensation Insurance
o ote : the listing of accounts used to determine TLCB and TLCPY may
be modified from time to time a prescribed by the City's accounting and
budget procedures .
(c) A 30.00 bad check charge shall be asses ed for a check, draft, negotiable order of
withdrawal, or like instrument drawn on a bank or other depository institution given by
any person in full or partial payment of City ervices if the instrument is not paid or is
dishonored by the institution , charge and collect, through regular billing procedure or
otherwise, from whom the instrument was received pursuant to Code of Alabama,
Section 8-8-15 .
Severability. The sections , paragraphs , sentences , clauses and phrases ofthis ordinance
are severable, 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 upon it due adoption and publication as
required by law.
ADOPTED THIS THE 21 ST DAY OF OVEMBER, 2024
Attest:
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City Clerk
ADOPTED THIS THE 21 ST DAY OF NOVEMBER, 2024
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