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AN ORDINANCE determining the monetary requirements for the disposal of sewage for the fiscal year beginning January 1, 2007, and ending December 31, 2007, setting the sewer rate for the fiscal year beginning January 1, 2007, and ending December 31, 2007, and approving the amount of the sewage treatment capacity charge for 2007, in accordance with RCW 35.58.570; and amending Ordinance 12353, Section 2, as amended, and K.C.C. 4.90.010, Ordinance 15194, Section 2, and Ordinance 11398, Section 1, as amended, and K.C.C. 28.84.055.
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BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Ordinance 12353, Section 2, as amended, and K.C.C. 4.90.010 are each hereby amended to read as follows:
A. Having determined the monetary requirements for the disposal of sewage, the council hereby adopts a ((2006)) 2007 sewer rate of ((twenty-five dollars and sixty cents)) twenty-seven dollars and ninety-five cents per residential customer equivalent per month. Once a sewer rate ordinance becomes effective, the clerk of the council is directed to deliver a copy of that ordinance to each agency having an agreement for sewage disposal with King County.
B. The King County council approves the application of Statement of Financial Accounting Standards No. 71 (FAS 71) to treat pollution remediation obligations as regulatory assets and establish a rate stabilization reserve for the purpose of leveling rates between years.
C. As required for FAS 71 application amounts are to be placed in the rate stabilization reserve from ((2005)) operating revenues and removed from the calculation of debt service coverage ((for 2005)). The reserve balance shall be an amount at least sufficient to maintain a level sewer rate between ((2005)) 2007 and ((2006)) 2008, and shall be used solely for the purposes of: maintaining the level sewer rate in ((2006)) 2008; and if additional reserve balance is available, moderating future rate increases beyond the ((2005-2006)) 2007-2008 period. If the estimated amount of the reserve, as shown in the financial forecast, Attachment A to ((Ordinance 14942)) this ordinance, needs to be adjusted to meet debt service coverage requirements for ((2005)) 2007, the county executive shall notify the council of the change by providing an updated financial forecast.
D. The executive shall provide monthly cost reports to the council on Brightwater as outlined in K.C.C. 28.86.165.
SECTION 2. Ordinance 15194, Section 2, is hereby amended to read as follows:
Monetary requirements for the disposal of sewage for the fiscal year beginning January 1, ((2006))2007, and ending December 31, ((2006))2007. The council hereby determines the monetary requirements for the disposal of sewage as follows:
Administration, operating, maintenance repair and replace (net of other income): (($62,681,812)) $66,229,533.
Establishment and maintenance of necessary working capital reserves: (($6,168,334)) $3,478,065
Requirements of revenue bond resolutions (not included in above items and net of interest income): (($143,209,093)) $161,689,558.
TOTAL: (($212,059,238)) $231,397,156.
SECTION 3. Ordinance 11398, Section 1, as amended, and K.C.C. 28.84.055 are each hereby amended as follows:
A. The amount of the 1994 metropolitan sewage facility capacity charge adopted by K.C.C. 28.84.050.O. shall be seven dollars per month per residential customer or residential customer equivalent for fifteen years.
B. The amount of the 1995 metropolitan sewage facility capacity charge adopted by K.C.C. 28.84.050.O. shall be seven dollars per month per residential customer or residential customer equivalent for fifteen years.
C. The sewage treatment capacity charge shall be seven dollars per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 1996, and December 31, 1996.
D. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be seven dollars per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 1997, and December 31, 1997.
E. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be ten dollars fifty cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 1998, and December 31, 1998.
F. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be ten dollars fifty cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 1999, and December 31, 1999.
G. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be ten dollars fifty cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2000, and December 31, 2000.
H. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be ten dollars fifty cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2001, and December 31, 2001.
I. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be seventeen dollars and twenty cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2002, and December 31, 2002.
J. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be seventeen dollars and sixty cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2003, and December 31, 2003.
K. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be eighteen dollars per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2004, and December 31, 2004.
L. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be thirty-four dollars and five cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2005, and December 31, 2005. ((For connections occurring between and including January 1, 2006, and December 31, 2006, said amount shall be thirty four dollars and five cents per month per residential customer or equivalent for fifteen years, to be reviewed, approved or changed during 2005. For connections occurring between January 1, 2007, and December 31, 2007, said amount shall be thirty four dollars and five cents per month per residential customer or equivalent for fifteen years, to be reviewed, approved or changed during 2006)).
M. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be thirty-four dollars and five cents per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2006, and December 31, 2006.
N. The amount of the sewage treatment capacity charge adopted by K.C.C. 28.84.050.O. shall be forty-two dollars per month per residential customer or equivalent for fifteen years for sewer connections occurring between and including January 1, 2007, and December 31, 2007. For connections occurring between January 1, 2008, and December 31, 2008, said amount shall be fifty dollars per month per residential customer or equivalent for fifteen years, to be reviewed, approved or changed during 2007.
In accordance with adopted policy FP-12.3.d. in the Regional Wastewater Services Plan, K.C.C. 28.86.160.C., it is the council's intent to base the capacity charge upon the costs, customer growth and related financial assumptions used in the Regional Wastewater Services Plan.
In accordance with adopted policy FP-3 in the Regional Wastewater Services Plan, K.C.C. 28.86.160.C, the council hereby approves the cash balance and reserves as contained in the attached financial plan for 2007.
In accordance with adopted policy FP-12.3.c., King County shall pursue changes in state legislation to enable the county to require payment of the capacity charge in a
single payment, while preserving the option for new ratepayers to finance the capacity charge.