Legal 3 col x 11”
0728 0804
NOTICE OF PUBLIC HEARING REGARDING AN ORDINANCE ESTABLISHING AND FIXING RATES, FEES AND CHARGES OF THE MUNICIPAL WASTEWATER SYSTEM
OF THE TOWN OF CLAY, WEST VIRGINIA
WHEREAS, the Town of Clay previously issued bonds for its wastewater system, and said bonds remain outstanding;
WHEREAS, the Town’s bonds require that its wastewater system generate positive cash flow, meet coverage requirements, and comply with applicable law;
WHEREAS, the Town’s wastewater rates were most recently modified in 2015;
WHEREAS, W.Va. Code §24-1-1(k) requires governmentally owned utilities to maintain rates which generate revenue to-meet a working capital reserve fund requirement equal to one-eighth of operation and maintenance expense, and to also generate revenue to meet depreciation expenses;
WHEREAS, the Town needs to be in compliance with its existing bond obligations and statutory law in order to undertake a wastewater project with grant or bond financing;
WHEREAS, the Town has received a favorable financial package recommendation consisting almost entirely of grant funding from the West Virginia Infrastructure and Jobs Development Council for a $7 million project (“Project”) to upgrade the Town’s wastewater treatment plant and lift stations;
WHEREAS, the Town needs to undertake the Project in order to adequately serve residents and businesses in compliance with regulatory standards;
WHEREAS, the Town’s wastewater system operated at a cash flow deficit in the fiscal year ended June 30, 2021, and as a consequence did not meet the coverage requirements of its bonds, did not meet the statutory working capital reserve requirement, and did not meet the statutory obligation to fund depreciation expense;
WHEREAS, the Town’s wastewater system requires improved cash flow in order to meet its bond and statutory obligations, and to operate proficiently;
WHEREAS, the Town’s wastewater system does not have the required working capital reserve;
WHEREAS, the Town’s tariff should include a flat rate charge for customers connected to a private well, a returned check charge, a pass through charge for processing credit card payments, and a leak adjustment charge, as is customary for sewer utilities in West Virginia;
WHEREAS, the Town Sanitary Board’s accountant has prepared a wastewater rate increase proposal to enable the Town to improve cash flow, meet bond coverage requirements, and meet the working capital reserve and depreciation requirements;
WHEREAS, no further rate increase is expected to be needed in order to construct the Project;
WHEREAS, the Sanitary Board accountant’s recommended rates would result in a charge to Clay residential customers using 3,400 gallons per month of $54.98, which is less than the charges of 60 other sewer utilities in West Virginia for that volume;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF CLAY will hold a public hearing at its August 9, 2022, 5:30 p.m. Special City Council Meeting to be held at Clay Town Hall, 956 Main St., Clay, WV prior to considering the wastewater rate increase ordinance (“Ordinance”) on second reading for final adoption. The Council will receive public comments on the Ordinance at the public hearing. Copies of the Ordinance are available at Clay Town Hall. The Ordinance, if adopted, will establish the following rates, fees and charges:
EFFECTIVE ON ALL BILLS RENDERED 45 DAYS FROM PASSAGE OF ORDINANCE
APPLICABILITY
Applicable within the entire territory served
AVAILABILITY OF SERVICE
Available for residential, commercial, governmental and industrial and wastewater service.
RATES (Customers with metered water supply)
First 2,000 gallons used per month $ 16.17 per 1,000 gallons
All over 2,000 gallons used per month $ 16.17 per 1,000 gallons
MINIMUM CHARGE
No bill will be rendered for less than $ 32.34 per month
FLAT-RATE CHARGE (Customers with non-metered water supply)
Each customer shall pay a minimum charge of $ 43.66 per month.
(Equivalent to 2,700 gallons of water usage).
DELAYED PAYMENT PENALTY
The above tariff is net. On all accounts not paid in full when due, ten percent (10%) will be added to
the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only
once for each bill where it is appropriate.
RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the Town or a maximum of $ 25.00 will be
imposed upon any customer whose check for payment of charges is returned by the bank due to
insufficient funds.
WATER DISCONNECT/RECONNECT/ADMINISTRATIVE FEES
Water service will not be restored until all past due wastewater bills have been paid in full.
There shall be a $ 25.00 reconnection charge paid prior to restoration of water service which has been
previously disconnected for any reason.
In the event that Town staff or agents collect money at the customer’s residence in order to stop
disconnection, an administrative fee of $ 25.00 shall be paid in addition to other charges to prevent
disconnection.
CONNECTION CHARGE
$ 325.00
SECURITY DEPOSITS
All new applicants for residential or other wastewater service shall make a deposit of (i) a minimum of fifty dollars ($50.00), or (ii) or two-twelfths (2/12) of the annual estimated charge for wastewater
service, whichever is greater. The Town shall not be bound to supply wastewater until this condition
is fulfilled. In any case where a deposit is forfeited to pay service rates and charges which were
delinquent at the time of disconnection or termination of service, no reconnection or reinstatement of
service may be made by the Town until another deposit, as described above, has been remitted to the
Town. A refundable security deposit will be refunded with interest (at a rate provided annually by the
Public Service Commission) after 12 consecutive months of on time payments.
LEAK ADJUSTMENT
$ 3.50 per 1 ,000 gallons is to be used when a bill reflects unusual consumption which can be
attributed to eligible leakage on the customer’s side of the meter. This rate shall be applied to all such
consumption above the customer’s historical average usage.
EFT, ACH, CREDIT CARD AND DROP BOX PAYMENTS
A service charge will be imposed on EFT, ACH, Credit card or Drop Box payments. The amount shall
be equal to the actual charges to the Utility from the financial institution for processing payment.
TOWN COUNCIL
TOWN OF CLAY, WV