9442-03 Amend Chapter 17 - Establish new Sewer Rates

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ORDINANCE NO. °I `~ `12- 03 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 17, ARTICLE 2, SECTION 17-21, AND SECTION 17-25 OF THE SOUTH BEND MUNICIPAL CODE TO ESTABLISH NEW SEWER RATES STATEMENT OF PURPOSE AND INTENT The City of South Bend (City) adopted Ordinance 9387-02 (Bi1188-02) January 13, 2003 revising the rates imposed on all users of the municipally owned sewage works. That ordinance was the subject of challenge by some of the utility users and the St. Joseph Superior Court in Case 71D04-0301-MI-00002 declared Ordinance No. 9387-02 to be void on procedural grounds. Because the sewer rates established in January 2003 are no longer valid, it is critical to the City's physical and financial operation of its sewer utility that revenues be increased over the level that existed prior to Ordinance 9387-02. This necessitates an increase in rates paid by all municipal sewer utility users. In order to raise revenue in a manner which will assure short term, uninterrupted operations of the City's sewer utility, this ordinance amending the City's sewer utility rates is being enacted for calendar years 2003 through 2005, and it provides fora 24% across the board increase in 2003/2004 over the rates established in 1988 with an additional across the board increase of 5% in 2005 over the new 2003/2004 rates. Nothing contained in this Ordinance should be interpreted to be an endorsement of any particular rate making methodology, nor should this Ordinance preclude the City of South Bend from using any other sewer rate making method in the future. This ordinance further clarifies and expands upon the advisory committee which was created initially in Ordinance 9387-02 to "offer advice on future rates to address CSO, storm water and other challenges for 2005 and beyond." (Section II(b) of Ordinance 9387-02, Chapter 17, Article 2, Section 17-25 of the South Bend Municipal Code.) The composition of that advisory committee is more specifically designated in this ordinance to include one representative from each of the three largest customers with at least one to be a customer located within the City of South Bend. This ordinance is in the best interests of the City of South Bend and the users of the South Bend sewage works. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND as follows: Section I. Chapter 17, Article 2, Section 17-21 of the South Bend Municipal Code be and hereby is amended to read as follows: -1-