SUBJECT/RECOMMENDATION:
Title
Increase domestic water, lawn water, wastewater collection, and reclaimed water rates by 6.25%, effective October 1, 2017 and increasing same by 4.00% every October 1st in 2018 through 2021, and pass Ordinance 9054-17 on first reading.
Body
SUMMARY:
This utility rate increase is needed to provide funding to operate the Utility, maintain compliance with debt service coverage requirements, and to support the continuation of capital improvement projects needed to sustain the City’s utility infrastructure. Infrastructure improvements are needed for compliance with Federal, State and Southwest Florida Water Management District regulations concerning water supply and treatment, the wastewater collection system, the water reclamation facilities, and the reclaimed water system.
Stantec has completed a Water and Sewer Revenue Sufficiency Analysis to cover five years of operations. Considerations were to provide adequate revenue to fund utility cost requirements while recognizing the effects of recent minor customer and demand growth, purchased water costs, and increasing renewal and replacement requirements. The study covers the period Fiscal Year 2018 through Fiscal Year 2022 and recommends a 6.25% increase for Fiscal Year 2018 beginning October 1, 2017 and then 4.00% increases annually on October 1, 2018 through October 1, 2021. The increases are applicable to domestic water, lawn water, wastewater collection and reclaimed water.
The last rate change, Ordinance 8929-16, was approved on August 15, 2016 and provided for increasing domestic water, lawn water, wastewater collection and reclaimed water rates by 3.75% in Fiscal Years 2017 through 2021.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A