Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 23-59, 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 Mission to be financially responsible.
Executive Summary (General Business): Request the Council’s consideration to approve a 1.5% rate increase for the Utility Systems Department (“USD”) rates. The proposed rate adjustments represent an 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 rate increase.
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 directive.
Background: Pursuant to the directive given by the City Council at their July 24, 2023, Special City Council Meeting, the USD prepared an Ordinance increasing the utility rates provided in Chapters 61 and 62 of the City’s Code of Ordinances by 1.5%. The 1.5% increase is consistent with recommendations in the 2018-19 Water and Wastewater Rate Study and Long-Term Financial Overview performed by the USD’s consultant, Raftelis Financial Consultants, Inc.
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 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 1.5% increase in many of the fees, rates and charges set forth in Chapters 61 and 62 of the City’s code of ordinances. The average customer would see an increase of $1.38 per month with the proposed 1.5% increase. The average residential bill using 5,000 gallons would increase from $91.81 to $93.19.
Special Consideration: If approved, the customer rates become effective after the October 1 billing cycle. In other words, the customer’s 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. Each USD customer was notified of the public hearing 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
Attachments:
1. Ordinance;
2. Sample Bill
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: 23223-05
Legal Sufficiency Review:
Reviewed by Frank Moehrle, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.