HomeMy WebLinkAboutOrdinance 408 - Water Rate OrdinanceCHAPTER IV – WATER & SEWER
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ORDINANCE 408 WATER RATE ORDINANCE ............................................................ 408-1
Section 408.01: PURPOSE AND POLICY ................................................................. 408-1
Section 408.02: DEFINITIONS .................................................................................. 408-1
Section 408.03: RATES.............................................................................................. 408-2
Section 408.04: ADMINISTRATION ........................................................................ 408-3
Section 408.05: PENALTIES ..................................................................................... 408-3
Section 408.06: SEVERABILITY AND VALIDITY ................................................. 408-3
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ORDINANCE 408 WATER RATE ORDINANCE
Section 408.01. PURPOSE AND POLICY. The purpose of this Ordinance is to set and
recover fees from users of the St. Joseph Water System on an equitable basis to provide funds for
the operation and maintenance, debt service, replacement and improvements to the St. Joseph
Water System.
Section 408.02. DEFINITIONS. Except as may otherwise be provided or clearly
implied by context, all terms shall be given their commonly accepted definitions. For the
purpose of this Ordinance, the following definitions shall apply unless the context clearly
indicates or requires a different meaning.
a. Account. A record of public water service used by each metered property and the
periodic costs for those utility services.
b. St. Joseph Water System. Water transmission pipes, lines, fixtures, meters and all
necessary equipment and appurtenances owned or operated by the City of St. Joseph
water utility system for the purpose of providing water services for public or private
use.
c. User. A property owner connected to the St. Joseph Water System. In some cases, the
user is in the name of the business or management company as grandfathered in when
the account was established for the property owner under previous ordinance
requirements.
d. Water Rate. An authorized service fee as identified in Exhibit A of the St. Joseph
Code of Ordinances.
e. Depreciation. A reduction in the value of an asset with the passage of time, due in
particular to wear and tear.
f. Fixed Rate Charges. The base revenues needed to operate water utility system
associated with capacity and peak flow. Base revenues may also include revenues
needed to cover fixed costs such as debt service and capital replacements.
g. Variable Rate Charges. The flow charge needed to operate the water utility system
that fluctuates depending upon the amount of metered water usage. The variable rate
charges are determined on a uniform rate structure.
h. Uniform Rate Structure. A rate structure that has a constant per unit price for all
metered water consumed of the variable rate charges
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Section 408.03. RATES. To determine billable water, all users of the St. Joseph
municipal water system must have water meters installed to determine the amount of water used.
The water rates schedule will be adopted annually by the City Council as Appendix A of the St.
Joseph Code of Ordinances. In the event that after the rates are adopted, an apparent shortfall is
determined, the City Council will consider an amendment to Appendix A, using the same
hearing process as adopting the annual rates. The charges for water services will be divided into
two rates: water fixed charges and water usage charge.
a. Water Fixed Charges: All users of the St. Joseph Water System will be billed a
proportionate share of the debt service, fixed operational and fixed maintenance costs
of the water system. The fixed water charges shall be determined the size of the water
meter factor multiplied by a fixed rate adopted in the St. Joseph Fee Schedule
Ordinance. The factor shall be predicated on guidelines established by the American
Water Works Association (AWWA). The base fixed charge is based on a 3/4” and
5/8” water meter with a factor of one. The AWWA Equivalency Factor determines
the capacity flow available in the water meter from the base user. The AWWA
Equivalency Factor table used by the City of St. Joseph is depicted here.
3/4" and 5/8” Meter Factor of 1
1” Meter Factor of 2.5
1.5” Meter Factor of 5
2” Meter Factor of 8
3” Meter Factor of 15
4” Meter Factor of 25
6” Meter Factor of 50
b. Water Usage Charge: All users of the St. Joseph Water System will be billed for
water calculated on the basis of metered water usage. Annually the City will establish
a budget for the water fund that includes covering depreciation, debt service and
capital costs. The budgeted costs less the fixed charged revenues will be extrapolated
into a per gallon water use charge. The water usage rate will be billed as follows:
i. Residential Uses – The water use charge shall be calculated on the basis of
metered water usage.
ii. Commercial/Industrial – The water use charge shall be calculated on the
basis of metered water usage.
iii. Mixed Use Facility – The water use charge shall be calculated on the basis
of the metered water usage. Each individual business in a multi -use
facility shall be required to have a separate meter and will be billed
separately. Mixed used facilities built prior to this ordinance adoption may
have one water meter servicing multiple units within the facility. The City
of St. Joseph is not responsible for billing water use to individual units
within the mixed-use facility that does not meter each unit separately.
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iv. Other Uses – Manufactured Home Community Parks “Park” are
responsible for all infrastructure within the Park and will be billed for
usage based on the water meter readings. The City shall not be responsible
for billing the individual tenants/property owners within the Park.
Section 408.04. ADMINISTRATION. The Water Service Charge System and Water
Service Fund shall be administered according to the following provisions:
Subd. 1: The City shall maintain the Water Fund in accordance with the Minnesota
Accounting and Financial Reporting Standards as adopted and amended by the Office of the
State Auditor.
Subd. 2: The City Council shall annually review user rates and charges to determine
whether sufficient revenue is being generated for the effective operation, maintenance,
replacement, management of the Water System and debt retirement.
Subd. 3: Bills for service shall be as regulated by St. Joseph Ordinance 409.
Subd. 4: The owner of the premise shall be liable to pay for the service to such premises,
and the service is furnished to the premises by the City only upon the condition that the owner of
the premises is liable therefore to the City. All accounts shall be carried in the name of the
owner of the property and the City does not have a responsibility to mail notices to tenants.
Section 408.05. PENALTIES.
Subd. 1. Criminal Penalties. Any person violating any of the provisions of this
ordinance shall be guilty of a criminal offense, punishable as a misdemeanor as defined by City
ordinance or state law.
Subd. 2: Twice annually delinquencies in excess of three service periods shall be
certified to the Stearns County Auditor as taxes or assessments on the real estate. Nothing in this
ordinance shall be held or construed as in any way stopping or interfering with the right of the
City to levy taxes or assessments against any premises affected by any delinquent or past due
water service charges.
Subd. 3: As an alternative to levying a lien, the City may, at its discretion, file suit in a
civil action to collect such amounts as are delinquent and due against the occupant, owner, or
user of the real estate, and shall collect as well all attorney's fees incurred by the City in filing the
civil action. Such attorney's fees shall be fixed by order of the court.
Section 408.06. SEVERABILITY AND VALIDITY.
Subd. 1: If any section or subdivision of this ordinance shall be held invalid, the
invalidity thereof shall not affect the validity of the other provisions of this ordinance, which
shall continue in full force and effect.
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Subd. 2: This ordinance amendment shall be in full force and take effect from and after
its passage and approval and publication as provide by law.
New 07/2017
Amended 10/2024