Details for VALPARAISO CITY UTILITIES / LEGALS - Ad from 2019-10-17

NOTICE OF PUBLIC HEARING ON PROPOSED WATER FEES
BY THE CITY OF VALPARAISO, INDIANA FOR THE DAMON RUN SERVICE AREA
Property owners, ratepayers, and other interested parties served or to be served by the waterworks of the City of Valparaiso, Indiana (“City”), are hereby notified that the City Council
has introduced proposed Ordinance No. 26-2019 (“Ordinance”). Ordinance No. 26-2019 establishes the City’s fees only for water customers connected to the Damon Run
Conservancy District but located outside of Damon Run’s service territory. The City Council will hold a public hearing on Monday, October 28, 2019, at 7:00 p.m., local time, at the
City Hall, 166 Lincolnway, Valparaiso, IN 46383, in order to receive public input on the Ordinance and may consider adoption thereof at such time. Please note that the rates and
charges under the Ordinance do not apply to existing customers currently connected to Valparaiso City Utilities. The Ordinance adopts a water fee or payment in lieu of
property taxes for those properties connected to and served by the Damon Run System but located outside of the Damon Run service territory (Porter Hospital and Liberty School).
Accordingly, although existing customers of VCU may still receive notice pursuant to I.C.§ 8-1.5-3-8.1(c), the rates for existing customers of VCU are not altered and
remain in effect. For further information regarding the proposed Ordinance, please contact Valparaiso City Utilities at 219-462-6174. The schedule of the rates and charges for the
Damon Run Service Area, which are more fully set forth in the Ordinance, is as follows:
VALPARAISO CITY UTILITIES
SCHEDULE OF PROPOSED CHANGES TO CITY’S WATER FEES FOR THE DAMON RUN SERVICE AREA ORDINANCE NO. 26-2019
DAMON RUN CONSERVANCY DISTRICT
Exhibit A (1)
PORTER HOSPITAL TRUE-UP CALCULATION-FOR PERIOD 7/1/18 - 6/30/19
Payment-in-Lieu-of-Taxes (PILOT) and True Up
Pay 2018
$2,275.82
197.03
448,404.81
12
6
$224,202.41

Average Residential Tax Bill (1)
Times: Actual EDUs for 12 months ended 6/30/19 (2)
Calculated PILOT
Divided by: 12 months
Times: Number of Months Related to Pay 2018 & Pay 2019
Calculated PILOT

Totals

Month
July 2018
August 2018
September 2018
October 2018
November 2018
December 2018
January 2019
February 2019
March 2019
April 2019
May 2019
June 2019

Calculated PILOT
Less: Actual Pilot Bill Sewer
Less: Actual Pilot Bill Water
Payment Due from (Credit Due to)

EDU’s Billed
198.32
198.32
198.32
198.32
198.32
198.32
198.32
198.32
198.32
198.32
198.32
198.32
True-Up Calculation - Water

Pay 2019
$2,253.11
197.03
443,930.26
12
6
$221,965.13

Total

Current District Rates
(excludes Portage and IAW Charges)
Debt Service
Sewer
$64.13
Water
$145.69

$446,167.54

Actual Sewer Bill PILOT
Debt Service
$12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
12,718.26
$152,619.12

(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)

Actual Water Bill PILOT
Debt Service
$28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
28,893.24
$346,718.88

$446,167.54
(152,619.12)
(346,718.88)
($53,170.46)

(1) Based on the Pay 2018 and Pay 2019 residential tax bills for District customers as provided by Damon Run Conservancy District (DRCD).
(2) Per Porter Hospital 12 Month Usage Recap report provided by District. Based on 22,294,000 annual gallons / 365 days / 310 gpd = 197.03 EDU’s.
(3) Based on $64.13 monthly user fee per EDU per Ordinance No. 2015-1.
(4) Based on $145.69 monthly user fee per EDU per Ordinance No. 2013-2.
DAMON RUN CONSERVANCY DISTRICT
LIBERTY SCHOOL TRUE-UP CALCULATION - FOR PERIOD 3/1/18 - 2/29/19
Payment-in-Lieu-of-Taxes (PILOT) and True Up
Average Residential Tax Bill (pay 2018) (1)
Times: Actual EDU’s for 2018 (2)
Calculated PILOT

Totals

Month
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19

Calculated PILOT
Less: Actual Pilot Bill Sewer
Less: Actual Pilot Bill Water
Payment Due from (Credit Due to)

$2,275.82
14.94
$34,000.75

EDU’s Billed
6.03
6.03
6.03
6.03
6.03
6.03
6.03
6.03
6.03
6.03
6.03
6.03
True-Up Calculation - Water

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

Exhibit A (2)

Current District Rates
(excludes sewage tracker and IAW Charges)
Debt Service
Sewer
$64.13
Water
$145.69

Actual Sewer
Debt Service (3)

$386.70
386.70
386.70
386.70
386.70
386.70
386.70
386.70
386.70
386.70
386.70
386.70
$4,640.40

Actual Water
Debt Service (4)

$878.51
878.51
878.51
878.51
878.51
878.51
878.51
878.51
878.51
878.51
878.51
878.51
$10,542.12

$34,000.75
(4,640.40)
(10,542.12)
($18,818.23)

(1) Based on the Pay 2018 residential tax bills for District customers as provided by Damon Run Conservancy District (DRCD).
(2) Per Liberty School Use 2018 report provided by District. Based on 1,691,000 annual gallons / 365 days / 310 gpd = 14.94 EDUs
(3) Based on $64.13 monthly user fee per EDU per Ordinance No. 2015-1.
(4) Based on $145.69 monthly user fee per EDU per Ordinance No. 2013-2.
I. Effective Date: This Ordinance shall be in full force and effect from and after its passage; however, the PILOT provided herein will not be implemented until the day
that Damon Run, VCU, and the City close on the acquisition of Damon Run’s system and assignment of the Service Agreements. The closing is currently scheduled for
December 2, 2019.
At the October 28, 2019 meeting of the City Council and prior to final adoption of Ordinance No. 26-2019, any property owners, ratepayers, or anyone else interested in the
proceedings may appear and be heard concerning the proposed fees. The hearing may be adjourned, if necessary. A complete copy of the Ordinance may be reviewed at the City
Hall located at 166 Lincolnway, Valparaiso, IN 46383. I.C. § 8-1.5-3-8.1(c) requires that this notice include a statement that following adoption of the Ordinance, users of the works
for service to property located outside the City’s corporate boundaries may be entitled to petition the Indiana Utility Regulatory Commission under I.C. § 8-1.5-3-8.3 to review and
address the rates and charges imposed on the users if a petition under I.C. § 8-1.5-3-8.2 with respect to the same rate ordinance has not been filed.
CITY OF VALPARAISO, INDIANA
/s/ Sharon Swihart, Clerk-Treasurer
3732211
October 14, 2019
10/17 -26339 -hspaxlp

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