Water Rate Ordinance. A copy of the executed Rate Ordinance. A copy of a pro forma income statement as the justification for the new rates.

Size: px

Start display at page:

Download "Water Rate Ordinance. A copy of the executed Rate Ordinance. A copy of a pro forma income statement as the justification for the new rates."

Tobias Richards
5 years ago
Views:

1 CITY OF PETERSBURG (304) Water Rate Ordinance Sandra Squire, Executive Secretary Public Service Commission of West Virginia 201 Brooks Street P. 0. Box 812 Charleston, West Virginia Dear Ms. Squire: The City of Petersburg (the City) enacted a new Water Rate Ordinance on September 19, In compliance with the procedural rules of the Public Service Commission for municipal rate change, I am submitting the following on the behalf of A copy of the executed Rate Ordinance. A copy of a pro forma income statement as the justification for the new rates. A copy of the Affidavit of Publication regarding the publication of Notice of the Public Hearing on the Rate Ordinance. The City serves 1300+/- customers, as determined by the number of bills rendered in the billing cycle last completed before the adoption of the Rate Ordinance. (5) A verification regarding the press release, post-enactment publications and the posting of notice. Copies from the last audit showing financial deficiencies in the water funds.

2 The City will forward the Affidavit of Publication of the Class I1 legal advertisement that conforms with Tariff No. 12, as soon as it is published. Thank you for your attention to this matter. Please call me if you have any questions or need any other information. Very Truly Yours, W Sarah J. Moomau Recorder

3 ORDINANCE AUTHORlZING THE CITY OF PETERS TO INCREASE RATES AND CHARGES FOR i 8: WATER SERVICE TO ITS CUSTOMERS PETERSBURG IN THE COUNTY 0 f BE IT ORDAINED AND ENACTED BY THE COUNCIL OF PETERSBURG: 1. This is enacted pursuant to the provisions of West Virginia Code, Chapter 8, Article 13, Section 12; and West Virginia Code, Chapter 24, Article 2, Section 4b(b); and West Virginia Code, Chapter 8, Article 11, Section 4; West Virginia Code, Chapter 16, Article 13, Section 16. Public Service Commission Rules for Tariffs 15D I 2. > It is hereby determined that the present water rates heretofore approved by the Public Service Commission are inadequate and the revenue derived by the City from water sales is insufficient to provide for the upkeep and operation of said system Artplicabilitv: Applicable in the entire temtory served. AvailabiIiQ of Service: Available for general domestic, industrial and commercial service. - Rates: --First 2000 gallons used per month $2.93 per IO00 gallons --Next 98,000 gallons used per month $2.36 per 1000 gallons --All over 100,000 gallons used per month $1.38 per 1000 gallons --All water furnished by the City to an entity for resale: $1.48 per 1000 gallons used per month Minimum &awe: No monthly charge for any water supplied through any meter shall be less than $5.85. Delayed Payment Penal&: A 10% penalty shall be added to all water bills not paid within twenty (20) day &om the date of billing. This delayed payment penalty is not interest and is only to be collected once for each delinquent bill. 8. Shut Off and Turn On Fee: Disconnect Fee Reconnect Fee $ Water Tap Fees: The following tap fees shall apply for all new services and changes in existing service. when requested by the customer: - Fees $

4 10. Deposit Fee: All new customers may be required to pay a deposit fee of one-twelfth (1/12) if the estimated annual charge to the customer for such service, which shall be retained by the City for one (1) year from the date of deposit, and shall be refunded to customer after one (1) year, upon written request, provided all water bills are then paid in full to date. After effective date of this ordinance, any customer who is delinquent and has not paid two (2) consecutive monthly bills until final notice cut off date, or thereafter, shall be required to pay a deposit to the City, which shall be refunded to customer after one (1) year period, customer shall have paid all monthly bills on or before the 20 day of each month after date of bill. 11. Customer s Legal Responsibilitv: A11 customers shall be legally responsible for all costs in connecting to City water meter, and for all future maintenance and upkeep of their water line. If customer moves to new location within City s service area, any previous deposit or money owed will be transferred to customer s new location. (If customer is a tenant, and neither tenant nor landlord notifies City to shut off meter, then landlord shall be responsible for payment of all future water bills until City is notified. 12. In adopting this Ordinance the City shall comply with all statutory mandates and procedural guidelines, including Notice requirements as contained and identified in the West Virginia Code, as amended, and the Public Service Rules for Tariffs. 13. This Ordinance shall become effective on November 18, Passed on the first reading on the L d a y of ZLb, Passed on the second reading on the 1 day of fiwkd-, Passed on the third reading on the 19 day of sq&+&c\\ ht-, This Ordinance will not take effect sooner than 45 days after fmal passage. Council Members Voting AGAINST Ordinance: The undersigned Mayor of the City of Petersburg does hereby certify that the foregoing Ordinance was adopted by a majority of Council.

5 ~ L % /191' : GOHDES AND THOMAS PAGt m/uz 6... CITY OF PETERSBURG WATER UTILITY PROFORMA CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30,2004 ProFarma Per Books Adiustmem ProForma 1> Available Cash Metered Sales Adjustments Forfeited Discounts Tap Fees OtherlMlsc. $ 407,551 1) $ 96;000 (22,383) 22,383 2,035 2,000 1,858 $ 503,551 2,035 2, Interest Income Total Cash Available $ 391,873 $. 118,383!l 510,256 Cash Requirements Operation & MaintenanceExpenses $ 359,673 2) $ 8, ,665 Cash Available for Debt Service $ 32,200 $ 141,591 '3 Debt Service Requirements ' Rural Utilities Service $ 27,936 $ 27,936 WV MEIC Series 90 37,380 37,300 Bank Loan - LOC 4,200 4,200 Note Payable - Progressive 2,485 2,485 Total Debt Service Requirements $ 72,001 $ 72,001 Remaining Cash Surplus (Deficit) S (39,801) $ 109,391 (A) $ 69,590 (A) Remaining cash to be expended for short-term impmvemens at the water plant and for modifications to the NPOES permit. ProForma Adiustments I) Projected increase in water sales based on 18% rate increase using May, 2004 as the test month. 2) Projected increase In 0 & M expenses based on 2.5% inflatlon factur.

6 82/19/ : GOHDES AND THOMAS PAGE *,. - I.: I. *.. :i.. a. V Cln OF PETERSBURG WATER UTlllN PRO-FORMA STATEMENT OF INCOME AND EXPENSES FOR THE YEAR ENDED JUNE 30,2004 Per Eooks PmForma Adjustments ProFoma Operating Revenues $ 391,061 $ 118,384 $ 509,444 -I) Operating Revenue Deductions Operation & Maintenance Expenses 359,673 Depreciation 71,101 Amortization 285. $ 431,059 Operating Income (Loss) (39,998) 8,992 $ , ,665 71, $ 440,051 69,393 Other Income - Interest Interest Expense (44,859) (44,859) Net Income (Loss) $ (84.045) $ 109,392 $ 25,346.

7 State of West Virginia County of Grant, to-wit: The undersigned hereby certifies that the annexed notice was duly published in the a weekly newspaper published at 3 Publishing Notice $ A3.+% Hand Bills Miscellaneous Total Sworn before me on this the 1s day of City of Petersburg, City Hall,, 21 Mt view Street, Petersburg, WV on September 19,, 2005, at seven o clock (7:OO) pm. Interested parties may appear and be heard at such time with respect to the passage of the proposed ordinance. Copies of the proposed ordinance are available at the Office of the Clerk, City Hall, in Petersburg, WV

8 (304) p CITY OF PETERSBURG P.O. BOX 669 PETERSBURG, W. VA Incorporated AFFADAVIT OF PUBLIC NOTICE BY POSTING State of West Virginia County of Grant, to wit: I, Sarah J Moomau, being first duly sworn upon my oath, do depose and say that I am the Recorder for the City of Petersburg, WV, and that I have been duly authorized by the City Council to execute this affidavit of public notice by posting. The attached public notice, substantially in the format of Tariff Form No. 12 of the Public Service Commission of West Virginia s Rules for the Construction and Filing of Tariffs, 150 C. S. R. 2, and as required by 150 C. S. R. l.c.4., was first posted in a conspicuous place on the premises where the City conducts it utility business with the public on September 20, 2005 and will remain posted until November 1,2005. ij Taken, subscribed and sworn to before me in the said county this 20th day of September, My Commission expires May 19,2003. P,Q Box f223 Petenburg, W 26847

9 (304) CITY OF PETERSBURG P.O. BOX 669 PETERSBURG, W. VA Incorporated 1910 CITY OF PETERSBURG P. 0. BOX 669 PETERSBURG, WV SEPTEMBER 20,2005 Legal Advertising Department Grant County Press South Main Street Petersburg, WV Dear MaddSir: 2 Print the enclosed Tariff Form No. 12 as a Class I1 legal advertisement, with the first publication to be made within five days of September 19,2005 and run for two weeks. I have enclosed two copies. Please send one copy to your newsroom as a press release. Since this is a matter of vital public interest to many of our readers, I encourage you to print a news article containing the information reflected in the Tariff Form. As soon as the second publication has been made, please provide me with an affidavit of publication and a tear sheet containing the newspaper article. Thank you for your cooperation in this matter. Yours Very Truly, - -. Recorder

10 AUDIT REPORT OF THE MUNICIPALITY OF PETERSBURG A CLASS I11 MUNICIPALITY IN GRANT COUNTY For the Fiscal Year Ended June 30,2004

11 AUDIT REPORT OF MUNICIPALITY OF PETERSBURG, WEST VIRGINIA FOR THE FISCAL YEAR ENDED JUNE 30,2004 P This audit has been conducted pursuant to the authority and duty of the State Auditor as Chief Inspector and Supervisor of Public Offices to conduct an annual inspection of all political subdivisions of the State of West Virginia and any agency created by these subdivisions. This power is granted by West Virginia Code $6-9-1 et seq.

12 MUNICIPALITY OF PETERSBURG, WEST VIRGINIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS CONDITION: Insufficient Rates -Water System It was noted during this audit that the rates the Municipality of Petersburg not sufficient to pay all obligations of the system. As reflected in the state changes in retained earnings of the proprietary fund, the Water Fund incurred a net loss of $84,045 during the fiscal year ended June 30,2004. CRITERJA: West Virginia Code $ states in part that:...the rates or charges to be charged for the services from such waterworks or electric power system shall be sufficient at a11 times to provide for the payment of interest upon all bonds and to create a sinking fund to pay the principal thereof as and when the same become due, and reasonable reserves therefore, and to provide for the repair, maintenance and operation of the waterworks or electric power system, and to provide an adequate depreciation fund, and to make any other payments which shall be required or provided for in the ordinance or order authorizing the issuance of said bonds. CAUSE: The Municipality did not estabiish water rates high enough to meet all general obligations of the water system. EFFECT: This violation caused the Municipality to incur a net loss in the Water Fund for the current year and ta be in violation of the state code. RECOhlMENDATION: The municipal officials of the Municipality of Petersburg are directed to review this statute and comply with the provisions set forth therein. AUXTXD AGENCY S RESPONSE: The municipal officials will analyze operations and the current rate structure to determine the proper course of action to correct the net loss. 50

13 MUNICIPALITY OF PETERSBURG, WEST VIRGINIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30,2004 CONDITION: B Water Revenue Bond Ordinance -Rate Covenant It was determined during our examination that the Petersburg Municipal Waterworks failed to assess sufficient rates or charges to comply with the 1996 Water Revenue Bond rate covenant ordinance. The waterworks system failed to meet this covenant by an amount of $9,698 during the fiscal year ended June 30,2004. CRITERIA: The Municipality of Petersburg's Revenue Bond Ordinance rate covenant states in part that: 'I...the schedule of rates or charges for the services of the System shall be sufficient to provide funds which, along with other revenues of the System, will pay all Operating Expenses and leave a balance each year equal to at least 115% of the maximum amount required in any year for debt service on the Local Bonds and all other obligations secured by a lien on or payable from the revenues of the System.... or if "reserve account" is (fully) funded, 110% of the maximum amount required... I' CAUSE: The Municipal Waterworks system failed to assess adequate rates and charges to pay all operating expenses of the system and meet the bond rate covenant requirements. EFFECT: The Municipality incurred a net loss in the current fiscal year and therefore is in violation of the bond rate covenant. Further losses could inhibit the ability of the system from meeting financial obligations. ]RECOMMENDATION: The municipal officials are directed to review this ordinance and comply with the provisions set forth therein. AUDITED AGENCY'S RESPONSE: The municipal officials will analyze operations and the current rate structure to determine the proper course of action to meet the required rate covenant. 51

14 TARIFF FORM NO. 12 v (TARIFF RULE 44) PUBLIC NOTICE OF CHANGE IN RATES BY MUNICIP NOTICE is hereby given that the City of Petersburg public utility, h s ordinance on September 19,2005 a tariff containing increased rates, tolls and charges for furnishing water service to 1300+/- customers at Petersburg, WV in the County of Grant. The proposed increased rates and charges will become effective November 18, 2005, unless otherwise ordered by the Public Service Commission and will produce approximately $96,000 annually in additional revenue, an increase of 18%. The average monthly bill for the various classes of customers will be changed as follows: ($) INCREASE INCREASE (Yo) Residential $ YO Commercial $ Yo Industrial $ YO Resale $ % Other $ YO --) Resale customers of the City of Petersburg include the Grant County Public Service District. The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing. The Commission shall review and approve or modify the increased rates only upon the filing of a petition within thirty (30) days of the adoption of the ordinance changing said rates or charges, by: (1) Any customer aggrieved by the changed rates or charges who presents to the Commission a petition signed by not less than twenty-five percent of the customers served by such municipally operated public utility; or

15 (2) Any customer who is served by a municipally operated public utility and who resides outside the corporate limits and who is affected by the change in said rates or charges and who presents to the Commission a petition alleging discrimination between customers within and without the municipal boundaries. Said petition shall be accompahed by evidence of discrimination; or (3) Any customer or group of customers who are affected by said change in rates who reside within the municipal boundaries and who present a petition to the Commission alleging discrimination between said customer or group of customers and other customers of the municipal utility. Said petition shall be accompanied by evidence of discrimination. 1 All petitions should be addressed to the Executive Secretary, Public Service Commission of West Virginia, 201 Brooks Street, P. 0. Box 812, Charleston, WV A complete copy of the proposed rates, as well as a representative of the utility to provide any information requested concerning it, is available to all customers, prospective customers, or their agents at any of the following offices of the utility. City of Petersburg A copy of the proposed rates is available for public inspection at the office of the Executive Secretary of the Public Service Commission at 201 Brooks Street, P. 0. Box 812, Charleston, WV , By:, - / Recorder U

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON Entered by the Public Service Commission of West Virginia, in the City of Charleston on the 10th day of October 201 7. CASE NO. 17-141 7-PSD-CN UNION