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HomeMy WebLinkAboutG41-88 Ordinance No. G4 I-88 AN ORDINANCE AMENDING THE RATES FOR WATER SERVICE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section I. That Section 14.04.180A2 of Chapter 14.04 of the Elgin Municipal Code, 1976, as amended, be and is hereby amended to read as follows: "2. For each one hundred cubic feet or fraction thereof of water supplied a charge of $1.18 shall be made." Section 2. That all ordinances or parts of ordinances in conflict with the provi- sions of this ordinance be are hereby repealed. Section 3. That this ordinance shall be in full force and effect from and after July I, 1988. s/ Marlene Shales Marlene Shales, Mayor Pro Tern Presented: May 25, 1988 Passed: May 25, 1988 Vote: Yeas 5 Nays 0 Recorded: Published: Attest: s/ Marie Yearman Marie Yearman, City Clerk a ' May 12, 1988 MEMORANDUM TO: Mayor and Members of the City Council FROM: City Manager SUBJECT: Water Rate Change PURPOSE: To provide adequate monies to finance the water portion of the 1988 General Obligation Bonds. BACKGROUND: At the May 11th Committee of the Whole meeting, the 1988 G.O. Bonds and water rates were discussed. Both were discussed for action at the May 25th Council meeting. The water rates were proposed at $1. 18 per 100 cubic feet, which is an increase of $0 . 04/100 cubic feet or an average residential increase of 44¢ per month. This is to provide adequate debt coverage for $2,025,000 of the bond issue to be used for water improvements. Since the bonds will be dated July 1 , 1988 , the water rates should become effective on the same date. Passage of the rub. rate increase at this time will allow Moody' s Rating Service to consider this action in their rating of the bonds. FINANCIAL IMPACT: The additional 4¢ per 100 cubic feet water rate increase will produce approximately $160,000 per year based on selling 4,000,000/100 cubic feet of water. This will meet the debt requirements. RECOMMENDATION: The staff recommends approval of the attached ordinance setting the new water rate of $1. 18 per 100 cubic feet. ames J. Cif City Manager JJC/JHB/daw r