Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 21-91, Public Hearing, An Ordinance Approving Utility Rate Increase for Water, Wastewater and Reclaimed Water
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Submitted By: Brad Macek, Utility Systems Director
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Approve a 1.5% rate increase for the Utility systems department and add a new rate for 2” Ultrasonic meter. The proposed rate adjustments represent an equitable cost recovery that helps ensure revenue sufficiency to cover the Utility’s operating expenses and debt coverage as mandated by the Utility’s bond covenants.
Presentation Information: N/A
Staff Recommendation: Move that the Council complete the motion in the affirmative.
Alternate Recommendations:
1. Move that the Council amend the recommendation and complete the motion in the affirmative.
2. Move that the Council not approve and provide staff with direction.
Background: Pursuant to the directive given by the Council at the Summer 2021 Retreat, the Utility Systems Department prepared an Ordinance increasing the utility rates provided in Chapter 61 and 62 of the City’s code of ordinances. The Utility systems department hired a consultant who recommended the rate increase.
Issues/Analysis: The Utility Systems Department operates as an enterprise fund and does not rely on the City’s general fund or other City offers to operate. The proposed increase will ensure sufficient revenue to cover operating expenses and the City’s utility debt coverage.
Financial Information: The proposed rate increase reflects a 1.5% increase in many of the rates set forth in Chapters 61 and 62 of the City’s code of ordinances. The average customer would see an increase of $1.35 per month with the proposed 1.5% increase. The average residential bill would increase from $89.10 to $90.45.
Special Consideration: If approved, the rates become effective after the October 1 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. 82,000 customers were notified of the public hearing as required by 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: The Utility Service Area
Attachments: Ordinance and Sample Notice
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: 6986
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.