14 - Amending Sewer RatesItem No. 14
TO: Mayor & City Council
Grayson Path, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: SEWER RATE INCREASE
DATE: February 8, 2021
BACKGROUND:
The City has been working and planning towards building a new Wastewater Treatment Facility
for several years. The new plant will be a combination of new plant and the use of existing plant
facilities where possible. This approach holds down the project cost. The new plant will have the
same geographic footprint as the existing plant which is a cost savings to the City since we will
not have to acquire additional property. This project nevertheless will require long term financing
which will need to be supported by the Wastewater Utility Rate. City Staff, Garver Engineering
(project engineers), and NewGen Strategies & Solutions (City's rate consultant) have considered
various options for easing into the required rate increase. Our goal was to phase in the needed rate
increase and thus help our community acclimate to the necessarily higher sewer rates while at the
same time raising sufficient revenue to make the debt service payments.
STATUS OF ISSUE: On January 25, 2021 the City Council was presented three rate increase
options that would be capable of funding the debt that will be issued to cover Phase 1 and Phase 2
costs of design and construction of the new wastewater plant. After consideration, the City Council
voiced their approval of the semi-annual rate adjustment option to finance the forthcoming
Certificates of Obligation (CO). The Council will consider adopting an ordinance that increases
sewer rates over time to fund the proposed debt issue.
BUDGET: The proposed ordinance goes into effect April 1, 2021 and will increase the wastewater
revenue stream. A new construction fund and a new Interest & Sinking Fund will be established
to handle the expenditure of the CO proceeds and to make the required debt payments.
OPTIONS:
1. Approve the proposed sewer rate ordinance.
2. Reject the proposed sewer rate ordinance and give city staff further directions.
RECOMMENDATION:
Motion to approve the proposed sewer rate ordinance.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING SECTION 34-23(a), "SEWER RATES—FOR CUSTOMERS USING
CITY WATER," OF CHAPTER 34 OF THE CODE OF ORDINANCES OF THE
CITY OF PARIS, TEXAS TO REFLECT CHANGES RECOMMENDED BY THE
CITY'S RATE CONSULTANT; PROVIDING A REPEALER CLAUSE, A
SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on the 251h day of January, 2021, the City Council of the City of Paris,
Texas, was presented multiple sewer rate options prepared by NewGen Strategies and
Solutions LLC,
WHEREAS, on January 25, 2021, the City Council has determined that it is in the
best interest of the City of Paris and its citizens to implement the proposed semi-annual
rate increases for sewer services recommended by the City's rate consultant NewGen
Strategies and Solutions, LLC by amending portions of Article Il, "Service Charges," Chapter
34, "Water, Sewer, and Sewage Disposal," of the City of Paris Code of Ordinances;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby in
all things approved.
Section 2. That Subsection (a) of Section 34-23 of the Code of Ordinances of the
City of Paris, Texas, be, and the same are hereby amended to read in their entirety as
follows:
"Sec. 34-23. Sewer rates - For customers using City water.
"(a) Charges for sewer service furnished by the City to residential,
commercial and industrial customers shall be based upon customer class and
meter size, incorporating a base monthly cost for the first increment of usage
and a cost for each additional one hundred (100) cubic feet or portion of one
hundred (100) cubic feet above the first increment, as shown in the following
table:"
Section 3. That the Table attached hereto as Exhibit A is a part of this
ordinance and shall be published as part of Sec. 34-23.
Section 4. That sewer rates established in Sections 2 and 3 above shall be effective
beginning with April 1, 2021 consumption.
Page 1 of 2
Section 5. All provisions of the ordinances of the City of Paris, Texas in conflict with the
provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of
the City of Paris not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 6. The repeal of any ordinance or part of ordinances affected by the enactment
of this ordinance shall not be construed as abandoning any action now pending under or by
virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty
accruing or to accrue, or as affecting any rights of the municipality under any section or
provisions of any ordinance at the time of passage of this ordinance.
Section 7. It is the intention of the City Council of the City of Paris that this ordinance,
and every provision hereof, shall be considered severable, and the invalidity or partial
invalidity of any section, clause, or provisions of this ordinance shall not affect the validity of
any other portion of this ordinance.
Section B. Any person violating any of the provisions of this ordinance shall be
guilty of a Misdemeanor and, upon conviction, shall be fined in accordance with Section 1-6
of the Code of Ordinances and each and every day's continuance of any violation of the
above -enumerated section(s) shall constitute and be deemed a separate offense.
Section 9. Introduced and read on February 8, 2021, at a regular meeting of the City
Council of the City of Paris
Section 10. That this ordinance shall become effective from and after its passage and
publication as required by law.
PASSED AND ADOPTED this 8th day of February, 2021.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Steven J. Clifford, M.D., Mayor
Page 2 of 2
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