Wastewater facility progresses; a rate increase is planned for January 1, 2023

With the progress at the new Wastewater facility, the City is taking an additional State Revolving Fund (SRF) Loan to cover the pay requests from construction. The SRF Fund offers affordable loan options to cities to improve infrastructure and comply with federal and state water quality requirements. In order to submit a loan request from SRF, we are required to show that rates are in place to repay the debt when the project is finished.

The Nevada City Council has reviewed rates with the City’s financial advisor, and at the August 22 City Council meeting, the first reading for the ordinance that will provide the necessary revenue to repay the debt was approved. Along with the official publication, there will be two additional readings to adopt the rates. The new rates will take effect on the Jan. 1, 2023 utility bill, using the December 2022 meter reading.

Examples of the New Rates for the total utility bill (both water and sewer) that will take effect January 2023:

1,000 Gallons:       $68.64

4,000 Gallons:       $121.12

10,000 Gallons:   $226.08

Additional Note (added Sept. 1, 2022, due to many questions): This rate increase was planned, and we knew that rates were going to be around this area in the end. We have tried to take the gradual approach instead of sticker shock all at one time. We actually were able to save a little because of the diligence of our financial advisor and were able to reduce the last loan rate by 1 percent interest.

Using our City code language, the following information includes the new rates, along with some examples of how the rates will look.

99.06 USER CHARGES:

  1.   Minimum Charge. The minimum user charge per month shall be:

Current Meter Reading Date -March 2022                            $20.00

  1. Additional Quantity Use Charge. In addition to the minimum monthly charge, each contributor shall pay a user charge rate for operation and maintenance (including replacement), debt retirement of any existing or future bonded indebtedness or construction of reasonable and necessary improvements.

Current Meter Reading Date- June 2022                                $6.26

NEW      Meter Reading Date -December 2022                    $10.00

  1. Sewer Construction. In addition to the above two charges, each user shall be assessed an additional charge per month for payment of reasonable and necessary improvements.

Current Meter Reading Date – March 2022                          $5.00

NEW      Meter Reading Date – December 2022                   $8.00

NEW 4. Sewer Only Customer Deposits. The following deposit requirements are for those customers who use city sewer services but not city water:

(a) Before sewer service is provided to any customer, a deposit is required to the City Clerk equal to three months’ average use based on past usage during the most recent period of continuous occupancy, not less than seventy-five dollars ($75.00). The deposit may be refunded or credited to the customer’s account after a period of twenty-four (24) months during which time not more than one late payment penalty has been assessed.

Any customer who does not presently have a deposit on file, or in cases where a deposit is on file with the City, and who has been assessed more than two (2) late penalties within a twelve (12) month period, shall be required to pay a deposit in an amount equal to three months average use based on past usage during the most recent period of continuous occupancy, but not less than $75.00. In these cases, a “Notice of Required Deposit” shall be mailed by ordinary U.S. mail to the customer. In addition to notifying the customer that they must remit the deposit and the reason for its requirement, the Notice shall also state that if the deposit is not paid within 30 days from the date of the Notice, the sewer service may be discontinued. Any deposit required under this subsection may be refunded or credited to the customer’s account after a period of twenty-four (24) months during which time not more than one late payment penalty has been assessed.

The Wastewater Superintendent is authorized to terminate sewer service to any customer who does not timely remit the deposit or additional deposit set forth in this section.

99.07     SURCHARGE.  For those contributors who contribute wastewater the strength of which is greater than the limits set out below, a surcharge in addition to the normal user charge will be collected. The surcharge for operation and maintenance including replacement is:

  1. Carbonaceous Biological Oxygen Demand (CBOD) per pound over 300mg/l

July 2022, $0.223 (per pound)

July 2023, $0.229

July 2024, $0.236

July 2025, $0.243

*An Additional 3% increase yearly with the July billing

  1. Total Suspended Solids (TSS) in excess of 300 mg/l

July 2022, $0.543 (per pound)

July 2023, $0.559

July 2024, $0.576

July 2025, $0.593

*An Additional 3% increase yearly with the July billing

  1. Total Kjeldahl Nitrogen (TKN) in excess of 35 mg/l

July 2022, $0.865 (per pound)

July 2023, $0.891

July 2024, $0.918

July 2025, $0.945

*An Additional 3% increase yearly with the July billing

  1. Oil and Grease:
  2. $0.10 per pound in excess of 300 mg/l and an additional
  3. $0.20 per pound in excess of 600 mg/l

The New Rates for Use Charge and Sewer Construction will begin with the December 2022 meter reading for the January 2022 Utility Bill.

Ordinance No. 1030 (2022/2023)

 

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