9387-03 Amend Chapter 17, Article 2, Section17-21, and Section 17-25 , to Establish New Sewer Rates

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BILL NO. 88-02 ORDINANCE NO. 1 3~ 1~ O 3 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 last adjusted the rates imposed on users of municipal sewer service in 1988 (Ordinance No. 7942-88). Since that date the costs of operation, maintenance, taxes, replacement, debt service and capital expenses have increased significantly. Under IC 36-9-23-25, the municipal legislative body is required to establish just and equitable fees for services rendered by the sewage works. The statute further provides that just and equitable fees are fees that maintain the sewage works in the sound physical and financial condition necessary to render adequate and efficient service. The municipal legislative body may exercise reasonable discretion in adopting different schedules of fees, or making classifications inschedules of fees, based on variations in the costs of furnishing services to various classifications of users or to various locations, or the number of users in various locations. Experienced experts at Crowe, Chizek and Company, LLP, conducted a rate study and cost- of-service analysis for the City of South Bend on December 20, 2002 which supports the rates which are set forth herein. This Ordinance also eliminates former subsection 17-21(d) which provided separate rates for the "Clay Service Area" which no longer exists. During 2003 and 2004 and until amended, the rates adopted in this Ordinance constitute just and equitable fees within the meaning of IC 36-9-23-25(b). These rates are intended to be revised with new rates effective in 2005 to assure that the municipal sewer system has sufficient revenue to render adequate and efficient service to all of its users. Because it is the intent of the Common Council to review and also revise these sewer rates for 2005, it is also necessary to amend Chapter 17, Article 2, Section 17-25 to effectuate this intent. This Ordinance is in the best interests of the City of South Bend and the users of the South Bend sewer system. 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 -1-