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Title:
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Ordinance 25-51, Public Hearing, an Ordinance Approving Utility Rate Increases for Water, Wastewater and Reclaimed Water Rates
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Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 25-51, Public Hearing, an Ordinance Approving Utility Rate Increases for Water, Wastewater and Reclaimed Water Rates
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Submitted By: Kevin R. Matyjaszek, Utility Systems Director.
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Request the Council's consideration to approve a 3.5% increase to certain related rates, fees and charges that appear in the Utility Systems Department's (USD) rate schedule. Wastewater consumption rates are not proposed to increase. The proposed rate adjustments represent a fair and equitable cost recovery that helps ensure revenue sufficiency to cover the USD's operating expenses and debt coverage as mandated by the USD's bond covenants.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve the ordinance.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the rate increase.
2. Move that the Council not approve the rate increase and provide staff with direction.
Background: Pursuant to discussions by the City Council during their July 23-24, 2025, Workshop, the USD prepared an Ordinance to increase certain related utility rates, fees and charges provided in Chapters 61 and 62 of the City's Code of Ordinances by 3.5%. The Ordinance also includes language amending Section 63.17, governing lift station generators.
Issues/Analysis: The USD operates as an enterprise fund and does not rely on the City's general fund or other City coffers to operate. The proposed increase will help ensure sufficient revenue to cover the USD's operating expenses and the City's utility debt coverage.
Financial Information: The proposed rate increase reflects a 3.5% increase in certain fees, rates and charges set forth in Chapters 61 and 62 of the City's code of ordinances. The average customer uses 5,000 gallons of water per month and with that usage, they will see an increase of $1.26 per month on their bill. The monthly bill for residential customers served with both water and wastewater will increase from $95.05 to $96.31.
Special Consideration: If approved, the rates become effective after the October 1, 2025, billing cycle. The bill which covers October 1 will not be prorated. The USD customer will not see an increase until the first full bill after the October 1 billing cycle. More than 97,750 customers were made aware of the public hearings as required by Section 180.136, Florida Statutes via notification through the billing system. In accordance with Section 180.136, Florida Statutes, before a local government water or sewer utility increases any rate, charge, or fee for water or sewer utility service, the utility shall provide notice of the proposed increase to each customer of the utility through the utility's billing process. The notice shall state the date, time, and place of the meeting of the governing board of the local government at which such increase will be considered. The notice required by Section 180.136, Florida Statutes is in addition to any notice and public meeting requirements for ordinance adoption as provided by general law. A copy of the sample notice which was sent to each customer is attached hereto.
Location of Project: Utility Service Area.
Business Impact Statement: Yes
Attachments:
1. Ordinance 25-51
2. Sample Bill Notice to Customers
NOTE: All of the listed items in the "Attachment" section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 25213-01
Legal Sufficiency Review:
Reviewed by Russell Ward, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.
V45 4/21/2025