Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Rates topic
No spam. Unsubscribe anytime.
Council directs staff to draft ordinance applying 2.9% CPI increase to utility fees
Summary
After an extended discussion of low-income discounts and inactive-account fees, council agreed staff should draft an ordinance to apply a 2.9% CPI increase to water and sewer base rates and to disconnect/inactive fees; staff will return with data on discounted accounts.
Councilors debated whether to apply an annual CPI increase across water and sewer fees, how discounts should operate, and how inactive or seasonal accounts ought to be charged. Chair reviewed the municipal-code language and noted the provision that "charges for sewer service in the city of South Bend ... will be adjusted by an inflation factor equal to 100% of The US consumer price index," explaining the legal basis for annual adjustments.
Staff explained the low-income discount program includes 5%, 10%, 25% and 40% tiers depending on household income, with a maximum total discount of $300 per household per year and an annual renewal requirement. Staff said inactive accounts are currently charged roughly $30 per month for water and $54.50 for sewer and that the city averages about 35 such inactive accounts. Councilors expressed concern that raising inactive fees could shift burdens to low-income, year-round residents; others argued inactive accounts should contribute fairly because the city still pays loans and treatment-plant costs. The council also discussed operational practice around on/off service calls; staff said a $25 turn-on fee is listed in the bill but is rarely charged and recommended rewriting ordinance language so charges are waived for turnoffs/turn-ons related to verified leaks.
After debate, the council agreed to have staff draft an ordinance applying the 2.9% CPI increase to base service charges and disconnect/inactive fees and to return with the requested account-number data for low-income discounts before a final vote. "So we will get an ordinance drawn up then to represent 2.9% for the fee increase as well as the disconnect fee increase for 2.9% as well," the Chair said.
The council did not adopt the ordinance at this meeting; direction was given to prepare draft ordinance language and data for a future meeting so members can vote with full information.
