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ORD NO 30-2011 ORDINANCE NO. 30 -90 ORDINANCE ESTABLISHING RATES FOR WATER SERVICES SUPPLIED BY THE CITY OF VAN BUREN AND REPEALING PRIOR RATES FOR SUCH SERVICES. WHEREAS, the City of Van Buren, Arkansas (the "City owns and operates a water system and WHEREAS, the City must recover through rates charged to the customers of the system, the cost associated with the operation of the system together with the cost of certain extensions, betterments and improvements to the system which are necessary to make the system adequate to serve the needs of the City and its inhabitants; and WHEREAS, existing water rates and charges established by Ordinance No. 21 -2010 of the City adopted and approved December 20, 2010 are not sufficient to meet the requirements of the system and WHEREAS, it is necessary that Ordinance No. 21 -2010 be repealed in order to increase rates charged for the services of the system; and WHEREAS, the Van Buren Municipal Utilities Commission, after a necessary and complete review, has recommended the rate increase to the City Council as being in the best interest of the City and its inhabitants; and WHEREAS, when used in this Ordinance, the term "Water for Resale" shall refer to water purchased by Van Buren contract water users. The contract water users of Van Bureri s system are Oak Grove Water Users Association, Dora Water Users Association, and Sequoyah County Water Users Association. NOW, THEREFORE, BE IT ORDAINED AND ENACTED, by the City Council of the City of Van Buren, Arkansas that: Section 1. Effective November 1, 2011, the following monthly minimum charges are established as the rates for customers of the Van Buren Municipal Utility Water system of Van Buren. Meter Size Residential Minimum Monthly Charge 3/4 $4.75 1" $7.75 1 1/2" $15.65 2" $27.50 Meter Size Commercial Minimum Monthly Charge 3/ $4.75 1" $8.95 1 1/2" $19.75 2" $29.65 3" $65.50 4" $125.75 Meter Size Industrial Min imum Month Charge 3 /4 $7.85 1" $11.85 1 1/2" $19.75 2" $29.65 3" $65.50 4" $175.75 6" $260.85 Meter Size Water for Resale Minimum Monthly Charge 2" $29.65 3" $65.50 4" $175.75 6" $260.85 The charge for customers outside the city limits shall be one and one -half (1 1/2) times the rates for customers inside city limits. Section 2. The following volume charge rates and effective dates are established for customers of the Van Buren Municipal Utility Water System of the City of Van Buren. Residential: Volume Charges Per 1000 Gallons Effective Date $4.02 November 1, 2011 Commercial Volume Charges Per 1000 Gallons Effective Date $3.44 November 1, 2011 Industrial Volume Charges Per 1000 Gallons Effective Date $3.17 November 1, 2011 Water for Resale Volume Charges Per 1000 Gallons Effective Date $2.69 November 1, 2011 The charges for customers outside the City limits shall be one and one -half (1 1 /2) times the monthly rate for customers inside the City limits. Section 3. In addition to the rates and charges established by this ordinance, the Van Buren Municipal Utilities Commission, through its authorized representatives, is authorized and directed to cause the $0.30 per active water meter service per month charge mandated by Act 292 of 2007, to be collected and to cause the sums collected to be paid to the Arkansas State Health Department pursuant to Act 292 of 2007. Section 4. The provisions of this ordinance establish the monthly charges for water service by the City of Van Buren. All parts of ordinances which have previously established such rates and charges are hereby repealed. Section 5. Emergency Clause. It is determined that the providing of a safe and sufficient supply of treated water is essential to the well being of the City and its inhabitants and that an emergency is declared to exist in that the water rates and charges contained in this Ordinance are necessary to provide adequate funds for the operation, maintenance and financing of the water system of the City of Van Buren. Therefore, due to this emergency and as this Ordinance is necessary to preserve the health, safety, and welfare of the City and its inhabitants this ordinance shall be in full force and effect as of the date of its adoption and shall be implemented as of the dates set forth in this Ordinance. PASSED AND APPROVED THIS 1 `l day of 2011. APPROVED: Mayor Attest: 4 2/Lk-Q 6CeAkat City Clerk RESOLUTION A RESOLUTION RECOMMENDING TO THE MAYOR AND CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS, THAT RATES FOR THE SALE OF WATER BE INCREASED. WHEREAS, the City of Van Buren, Arkansas owns and operates a water system and WHEREAS, the Municipal Utilities Commission after careful and diligent review have determined that due to an increase in the utilities wholesale cost of water by the City of Fort Smith, the current water rates and charges as established by ordinance No. 21 -2010 are not sufficient to meet the requirements of the water system and WHEREAS, it is necessary and in the best interest of the City and customers of the system that said water rates be increased. NOW THEREFORE, be it resolved that the Van Buren Municipal Utilities Commission recommends to the Van Buren City Council that the existing ordinance establishing current water rates and charges be repealed and new rates and charges be enacted and become effective as shown in the proposed ordinance before the Council. PASSED THIS 1 a day of Cti Ob€t 2011. C. E. Dougan, C man Attest: S a. Kathy Geppert, Secretary As you are aware the Water and Sewer Commission and the City of Fort Smith have been in negotiations concerning the "true up" amounts for water usage by Van Buren. These amounts are for the years 2006 -2008. Through negotiations below are the amounts that have been agreed on: 2006 $327,226.00 2007 $129,227.00 2008 $124,721.00 $581,173.00 There is nothing due for 2009 and the amount for 2010 appears to be a relatively small amount in our favor. In order to pay for this amount due, the Commission is recommending a rate increase as outlined below: Customer Class Current Rate Increase New Rate Increase Per 1000 Gallons Per 1000 Gallons Residential $3.90 $0.12 $4.02 3.1% Commercial $3.32 $0.12 $3.44 3.6% Industrial $3.05 $0.12 $3.17 3.9% Resale $2.57 $0.12 $2.69 4.7% The proposed rate increase will be effective November 1, 2011.