ORDINANCE 2024-10A-authorizing water and sewer rate increases

[City Clerk]

The following ordinance, having been previously introduced on October 14, 2024, and a public hearing held thereon on this date, was offered for final adoption by Alderwoman Simmons and seconded by Alderwoman Moore.

ORDINANCE 2024-10A
An ordinance authorizing water and sewer rate increases by the City of Jeanerette, State of Louisiana; and providing for other matters in connection therewith.
WHEREAS, the City of Jeanerette, State of Louisiana (the "City"), now owns and operates a sewer system as a combined utility (the "System") as a revenue-producing work of public improvement; and
WHEREAS, the City intends to construct, acquire, extend and/or improve the System (the "Project") to enhance the services currently offered to the residents of the City; and
WHEREAS, the City was approved for grant funding through the Louisiana Division of Administration Water Sector Program (the "WSP") to assist with the aforementioned improvements, pending its ability to satisfy additional regulatory and financial requirements; and
WHEREAS, in order to satisfy the WSP requirements, the City must provide matching funds for the Project and proposes to issue Sewer Revenue Bonds (the "Bonds") in order to provide the requisite matching funds; and
WHEREAS, the City will be required to increase its sewer rates in order to satisfy the matching funds requirement of the WSP.
NOW, THEREFORE, BE IT ORDAINED, by the Mayor and Board of Aldermen of the City of Jeanerette, State of Louisiana, acting as the governing authority (the "Governing Authority") of the City, that:
SECTION 1. Beginning December 1, 2024, the City will increase its water rates per connection per month, based on the projections from the City's engineering consultants, as follows:
(A) For each inside the City residential water connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will be $17.74.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $4.00 per 1,000 gallons, or portion thereof, used per month.
(B) For each inside the City commercial water connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will be $23.65.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $5.00 per 1,000 gallons, or portion thereof, used per month.
(C) For each outside the City residential water connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will increase to $17.74.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $7.00 per 1,000 gallons, or portion thereof, used per month.
(D) For each outside the City commercial water connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will increase to $23.65.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $7.00 per 1,000 gallons, or portion thereof, used per month.
SECTION 2. Beginning December 1, 2024, the City will increase its sewer rates per connection per month, based on the projections from the City's engineering consultants, as follows:
(A) For each inside the City residential sewer connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will increase to $20.37.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will increase to $2.50 per 1,000 gallons, or portion thereof, used per month.
(B) For each inside the City commercial sewer connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will increase to $21.78.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $3.00 per 1,000 gallons, or portion thereof, used per month.
(C) For each outside the City residential sewer connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will increase to $29.51.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $2.50 per 1,000 gallons, or portion thereof, used per month.
(D) For each outside the City commercial sewer connection:
(i) the basic or minimum charge for the first 2,000 gallons used per month will increase to $30.91.
(ii) for each 1,000 gallons used, or portion thereof, in excess of 2,000 gallon per month, the charge will be $3.00 per 1,000 gallons, or portion thereof, used per month.
SECTION 3. Beginning July 1, 2025 and continuing through the end of the fiscal year, the City will increase rates as follows:
(A) The basic or minimum water rates charged for all connections per month by 2% over the basic or minimum rates charged beginning December 1, 2024.
(B) The basic or minimum sewer rates charged for all connections per month by 5.5% over the basic or minimum rates charged beginning December 1, 2024.
SECTION 4. Beginning July 1, 2026 and continuing through the end of the fiscal year, the City will increase rates as follows:
(A) The basic or minimum water rates charged for all connections per month by 2% over the basic or minimum rates charged in the prior fiscal year.
(B) The basic or minimum sewer rates charged for all connections per month by 37.5% over the basic or minimum rates charged in the prior fiscal year.
SECTION 5. Beginning July 1, 2027 and continuing through the end of the fiscal year, the City will increase rates as follows:
(A) The basic or minimum water rate charged for all connections per month by 2.5% over the rates charged in the prior fiscal year.
(B) The basic or minimum sewer rates charged for all connections per month by 2.0% over the rates charged in the prior fiscal year.
SECTION 6. Beginning July 1, 2028, the City will increase rates as follows:
(A) The basic or minimum water rates charged for all connections per month by 2.0% annually over the rates charged in the prior fiscal year.
(B) The basic or minimum sewer rates charged for all connections per month by 2.0% annually over the rates charged in the prior fiscal year.
SECTION 7. The City will continue to monitor its usage, expenses, and revenues and will adjust water and sewer rates as necessary to provide adequate revenues to cover operation, maintenance, and debt service costs to determine if any additional changes to the rates will be needed.
The foregoing ordinance having been submitted to a vote, the vote thereon was as follows:
YEAS: Alderwoman Clay, Alderwoman Moore, Alderwoman Simmons,
NAYS: Alderman Duplechain
ABSENT: None
ABSTAINING: Alderman Bourgeois
And the ordinance was declared adopted, on this, the 12th day of November, 2024.

________/s/ /s/
City Clerk Carol Bourgeois Jr.Mayor


 
STATE OF LOUISIANA
PARISH OF IBERIA

I, the undersigned City Clerk of the City of Jeanerette, State of Louisiana, do hereby certify that the foregoing pages constitute a true and correct copy of proceedings adopted by the Mayor and Board of Aldermen on November 12, 2024, authorizing water and sewer rate increases by the City of Jeanerette, State of Louisiana; and providing for other matters in connection therewith.
IN FAITH WHEREOF, witness my official signature on this, the 12th day of November, 2024.

/s/
City Clerk