HomeMy WebLinkAboutOrdinances - MC-15-1115 - 09/14/2015 - AMEND CHPT 26 WATER SEWER RATES & DEBT SERVICEORDINANCE NO. MC-15-1115
An Ordinance Amending Various Sections of Chapter 26 of the McHenry Municipal Code relating to
Water and Sewer Rates and Debt Service Charges
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as
contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this
Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution
of the State of Illinois.
WHEREAS, At its June 1, 2015 meeting, the City Council continued a discussion from a May 11,
2015 meeting regarding the adjustment of water and sewer rates to fund existing operating and maintenance
costs and to fund future capital improvements to the system. This discussion was guided by a Water and Sewer
Rate Analysis that was conducted by HR Green, Inc. in 2013. Previous methodologies used to adjust water
and sewer rates were based either on comparisons with surrounding communities or on a financial index, and
not on the actual operational, maintenance and capital improvement needs of the municipality. These
adjustments are not only needed to ensure that appropriate revenues are derived to operate, maintain and
improve the existing water and sewer systems but, in terms of sewer rate adjustments, as a condition of
eligibility for an IEPA Water Pollution Control Loan, to be used to fund the decommissioning of the Central
Wastewater Plant and its consolidation with the South Wastewater Plant. The proposed rate structure reviewed
by Council on June 1st was the result of input provided by Council at the previous May 11th meeting.
Also at the June 1st meeting, Council approved an Ordinance authorizing the City of McHenry to
borrow funds from the IEPA Water Pollution Control Loan Program in an amount not to exceed $35,000,000,
and authorized staff to seek competitive bids for the decommissioning of the Central Wastewater Treatment
Plant and consolidation with the South Wastewater Treatment Plant.
On August 17, 2015, City Council approved a motion to accept and authorize the Mayor to sign a
Notice of Intent to Accept the bid of and award a construction contract for the McHenry Sanitary Wastewater
Treatment Facility Consolidation Project to Williams Brothers Construction, Inc. in the amount of $30,180,000
subject to IEPA approval, and to authorize the Mayor to sign, after IEPA approval, the construction contract
itself, Notice of Award, Notice to Proceed and any other documents necessary to implement the terms of the
construction contract.
Prior to the completion of the IEPA review of the Notice of Intent to Accept and Williams Brothers
Construction, Inc. documents (estimated at September 20,2015), the City must have adopted water and sewer
rates and a debt service mechanism for the IEPA loan as previously described.
This Ordinance Amends Various Sections of Chapter 26 of the McHenry Municipal Code relating to
Water and Sewer Rates and Debt Service Charges cleans up various sections of Chapter 26 of the Municipal
Code and identifies water and sewer rates as well as debt service and other fees, to be paid by users of the
City's water and sewer system - both inside and outside of the City Limits, and for metered and non-metered
accounts. The rates included in this Ordinance provide for the debt service fees for the IEPA Water Pollution
Control Loan have been adjusted lower to account for a loan amount of $33,600,000 versus the $35,000,000
original loan request.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and Aldermen of the City of McHenry,
McHenry County, Illinois, as follows:
Combined Waterworks and Sewerage System User Service Charges, Page 1
SECTION 1: Section 26-0 Combined Waterworks and Sewerage System (MC-99-730) shall be
amended in its entirety to read as follows:
Sec. 26-0. Combined Waterworks and Sewerage System; Definitions
The City's waterworks and sanitary sewerage treatment facilities are a combined waterworks and sewerage
system. The following definitions shall apply to the various articles and divisions of this Chapter 26:
CLASS 1 USES: These uses shall consist of residential, commercial, industrial, condominium and
apartment uses.
CLASS 2 USES: These uses shall consist of nursing home, congregate care and hospital uses.
CLASS 3 USE: The sole use within this class is the property located at 1401 North Avenue, McHenry,
Illinois.
COMMERIAL USER: A user whose property, location or operation consists of transit lodging, retail
or wholesale establishments or places engaged in selling merchandise or rendering services.
DEBT SERVICE CHARGE: The amount to be paid each billing period for payment of outstanding
interest, principal and coverage of a loan, bond, etc.
INDUSTRIAL USER: A user whose property, location or operation involves manufacturing activities
involving the mechanical or chemical transformation of materials of substance into products.
RESIDENTIAL USER: All dwelling units such as houses, mobile homes, apartments and permanent
multi-family home dwellings which are connected and able to utilize water through a meter from the
City's waterworks system.
UNIT: Each building or part thereof for which a certificate of occupancy has been issued by the City.
USER: Each residential dwelling unit (whether in a single-family, duplex or multi-family residential
building), or a commercial, industrial or other building unit, which utilizes water through a meter from
the City's water system or contributes, causes or permits the contribution of wastewater into the City's
public sewer. (Transient guest rooms in motels and hotels and patient rooms in hospitals, congregate
care facilities and nursing homes shall not be considered residential units.)
SECTION 2: Paragraphs A) and B) of Section 26-24 relating to waterworks of the McHenry
Municipal Code shall be amended as follows:
Sec. 26-24. Waterworks User Rates.
A) The following user service rates are established for the use of and for the service supplied by the City
waterworks system which shall be billed on a bi-monthly basis.
B) Water user rates shall be as follows through January 31.2016:
Within Corporate Limits:
First 4,000 gallons $12.44
Each succeeding 1,000 gallons $3.11/1,000 gals
Outside Corporate Limits:
First 4,000 gallons $18.64
Each succeeding 1,000 gallons $4.66 /1,000 gals
Water user rates shall be as follows on or and after February 1, 2016:
Combined Waterworks and Sewerage System User Service Charges, Page 2
Within the corporate limits of the City:
Class 1 uses: $3.48 per 1,000 gallons; and
Class 2 uses: $3.73 per 1,000 gallons.
Outside corporate limits of the City:
Class 1 uses: $5.22 per 1,000 gallons; and
Class 2 uses: $5.60 per 1,000 gallons.
In addition, each user within the City's corporate limits shall pay a $2.00 base charge with each bi-
monthly invoice which shall be applied to operations and maintenance and capital costs associated
with the City's waterworks system. Each user outside the City's corporate limits shall pay a $3.00
base charge with each bi-monthly invoice which shall be applied to operations and maintenance
and capital costs associated with the City's waterworks system. In the event that a user's water
account with the City is inactive, such user shall nonetheless still be billed for such base charge
even in the absence of any use of water.
In the event that City water is being utilized through a single water meter with more than one
different category of user, the type of user category utilizing the largest percentage of water at such
location shall be the category on which the applicable rate for such category shall be paid for all
such water utilized at such location, despite other, different categories of users utilizing water
through such meter.
* * *
SECTION 3: The following sections of Section 26-140 of the McHenry Municipal Code shall be
amended as follows:
Sec. 26-140. Sewer user service charges, costs for metered users.
(a) The following user service rates are established for the metered use of and for the service supplied by
the City sewerage works which shall be billed on a bi-monthly basis.
(2) Reserved
(f) Basic user rates shall be reflected in the May billing year for metered service.
(1) Within Corporate Limits: The current Basic User Rate per 1,000 gallons used is $3.49
through January 31. 2016.
Outside the Corporate Limits: The current Basic User Rate per 1,000 gallons used is $5.24
through January 31, 2016.
Effective on and after February 1, 2016, the sewer rates shall be as follows for metered uses:
Within the Corporate Limits of the City:
Class 1 uses: $3.64 per 1,000 gallons; and
Class 2 and 3 uses: $3.52 per 1,000 gallons.
Outside Corporate Limits of the City:
Class 1 uses: $5.46 per 1,000 gallons; and
Class 2 and 3 uses: $5.28 per 1,000 gallons.
In addition, on and after February 1,2016, each user of City sewer services within the City's
corporate limits shall pay a base fee of $4.00 bi-monthly to be applied toward capital projects
Combined Waterworks and Sewerage System User Service Charges, Page 3
such as replacement and upgrade of existing facilities associated with the City's sewer
treatment and distribution system as well as operating and maintenance expenses associated
with such system. On and after February 1.2016. each user of City sewer services outside the
City's corporate limits shall pay a base fee of $6.00 bi-monthly to be applied toward capital
projects such as replacement and upgrade of existing facilities associated with the City's
sewer treatment and distribution system as well as operating and maintenance expenses
associated with such system. In the event that a user's account with the City is inactive, such
user shall still be billed for such base fee even in the absence of any use of sewer services.
(2) The treatment service surcharge rate for sewer users whose wastewater exceeds 240 mg/1 of
BOD5 shall be $0.21 per pound in excess of 0.20 pounds per 1,000 gallons. (MC-94-624)
(3) The treatment service surcharge rate for sewer users whose wastewater exceeds 275 mg/1 of
suspended solids shall be $0.13 per pound of suspended solids in excess of 0.23 pounds per
1,000 gallons. (MC-94-624)
(4) For all users within the corporate limits of the City, there is hereby established a "20IOC
Fixed Debt Service Charge" of $6.00 bi-monthly to be applied to the $5,665,000 general
obligation bonds, Series 20 IOC, issued by the City. In the event that a user's account with the
City is inactive, such user shall still be billed for such 201OC Fixed Debt Service Charge even
in the absence of any use of sewer services.
(5) For all users outside the corporate limits of the City, there is hereby established a "20 IOC
Fixed Debt Service Charge" of $9.00 bi-monthly to be applied to the $5,665,000 general
obligation bonds, Series 20IOC, issued by the City, except as otherwise provided by an
intergovernmental agreement approved by the City. In the event that a user's account with the
City is inactive, such user shall still be billed for such 201 OC Fixed Debt Service Charge even
in the absence of any use of sewer services.
(6) In addition, for each user (metered and non-metered) of the City's sewerage works, there is
hereby established an "2015 IEP A Fixed Debt Service Charge" in the following amount, to be
paid bi-monthly to the City, and the revenues received from this IEPA Fixed Debt Service
Charge shall be solely dedicated to the repayment of the loan received by the City from the
Illinois Environmental Protection Agency, pursuant to its Water Pollution Control Loan
Program, in accordance with City Ordinance No. 15-1731, dated February 1, 2015, adopted
by the City Council on February 1,2015:
Within Corporate Limits of the City for Class 1 uses:
From February 1, 2016 through January 31, 2017: $ 10.22;
From February 1, 2017 through January 31, 2018: $20.44; and
From February 1, 2018 and thereafter: $30.66.
Outside Corporate Limits of the City for Class 1 uses:
From February 1, 2016 through January 31, 2017: $15.33;
From February 1, 2017 through January 31, 2018: $30.66; and
From February 1, 2018 and thereafter: $45.99.
Within Corporate Limits of the City for Class 2 uses:
From February 1, 2016 through January 31, 2017: $835.23;
From February 1, 2017 through January 31, 2018: $1,670.46; and
From February 1, 2018 and thereafter: $2,505.69.
Combined Waterworks and Sewerage System User Service Charges, Page 4
Outside Corporate Limits of the City for Class 2 uses:
From February 1, 2016 through January 31, 2017: $1,252.85;
From February 1, 2017 through January 31, 2018: $2,505.69; and
From February 1, 2018 and thereafter: $3,758.54.
Within Corporate Limits of the City for Class 3 uses:
From February 1, 2016 through January 31, 2017: $1,169.32;
From February 1, 2017 through January 31, 2018: $2,338.64; and
From February 1, 2018 and thereafter: $3,507.96.
(7) In the event that a user's account with the City is inactive, such user shall still be billed for
such IEPA Fixed Debt Service Charge even in the absence of any use of sewer services.
(g) The total sewer user service charge shall be computed according to the following formula:
C=W(B)+BC+DC+DU+X+P
Where: C = Total Sewer User Service Charge
B = Basic User Rate
W = Water Use Per 1,000 gallons
X = Surcharges for Excess Strength
P = Penalties
DC = Fixed Debt Service Charge
DU = SRF Debt Service Charge
BC = Base Charge
SECTION 4: Section 26-141 of the McHenry Municipal Code is amended to read as follows:
Sec. 26-141. Sewer user service charges for unmetered users.
(a) All non-metered users of wastewater facilities within the corporate limits of the City shall pay a flat bi-
monthly rate. The charge for non-metered users located within the corporate limits are as follows until
January 31,2016:
20IOC Fixed debt service charge $ 6.00
Variable debt service charge $ 5.71
Basic user charge $35.11
Total per billing cycle $46.82
(b) All non-metered users of wastewater facilities within the corporate limits of the City shall pay the
following flat bi-monthly rate on and after February 1, 2016:
20IOC Fixed debt service charge $ 6.00
Basic user charge $36.40
Total per billing cycle $42.40
(c) Non-metered users outside the corporate limits of the City shall pay the following flat rate charges per
bi-monthly billing period through January 31, 2016. Charges for non-metered users may be billed in
monthly increments if service was received for a portion of a bi-monthly period on a pro-rata basis in
increments of one-half of a bi-monthly period:
Combined Waterworks and Sewerage System User Service Charges, Page 5
20 IOC Fixed debt service charge
Variable debt service charge
Basic user charge
Total per billing cycle
$ 9.00
$ 8.57
$52.67
$70.24
(d) All non-metered users of wastewater facilities outside the corporate limits of the City shall pay a flat
bi-monthly rate. Charges for non-metered users may be billed in monthly increments if service was
received for a portion of a bi-monthly period on a pro-rata basis in increments of one-half of a bi-
monthly period. The charges for non-metered users located outside the corporate limits of the City
utilizing City sewer service areas are as follows on and after February 1, 2016:
20 IOC Fixed debt service charge
Basic user charge
Total per billing cycle
$ 9.00
$54.60
$63.60
(e) All non-metered users shall pay such the 2015 IEPA Fixed Debt Service Charge referenced in Section
26-140(f)(6) unless prohibited by an intergovernmental agreement approved by the City.
(f) In the event that a user's account with the City is inactive, such user shall still be billed this rate in the
absence of any use of sewer services.
SECTION 5: Section 26-142 of the McHenry Municipal Code is hereby deleted in its entirety.
SECTION 6: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance
shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair,
invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect.
SECTION 7: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the
extent of such conflict.
SECTION 8: This Ordinance shall be in full force and effect upon its passage, approval and
publication in pamphlet form (which publication is hereby authorized) as provided by law.
PASSED and APPROVED this 14th day of September 2015.
Voting Aye:
Voting Nay:
Absent:
Not Voting:
Abstaining:
CONDON, PETERSON, WIMMER, CURRY, SCHAEFER, GLAB, SANTI
NONE
NONE
NONE
NONE
Mayor
ATTEST:
vCg_C
Z:\M\McHen
City Clerk
•bf\Ordinances\WaterUserCharges.ord.doc
Combined Waterworks and Sewerage System User Service Charges, Page 6