Item Coversheet
Commission Agenda Item
 

MEETING DATE:  8/8/2016

SUBJECT:  Ordinance 16-15, Second Reading; Amending Code Section 38 - Utility Rates Water & Wastewater

PREPARED BY:  Adam Boukari, Assistant City Manager

RECOMMENDED ACTION:

Adopt Ordinance 16-15 on Second and Final Reading.

 

Summary

The City of Alachua establishes water, wastewater and reclaimed water rates to generate revenue sufficient to meet its operating expenses. The City of Alachua’s water, wastewater, and reclaimed water rates were last modified in 2015 for the Fiscal Year 2016 budget process.  The Administration evaluates utility rates annually during the budget process and, if warranted, recommends rates be adjusted.

 

Staff utilizes models for developing water, wastewater and reclaimed water rates. The forecasts determine whether or not rates will produce revenues which are sufficient to meet the expenses associated with providing utility service to our residents.  Staff proposes an increase in its water, wastewater, and reclaimed water rates to ensure the funds operate in a self-sustaining manner.

 

The Florida Public Service Commission (FPSC) annually publishes a Water and Wastewater Price Index. The prices establish a price increase or decrease for major categories of water and wastewater operating expenses. The intent of the price index is to identify the necessary adjustment that utility service providers should make to their rates to stay abreast of inflationary or deflationary pressures. The FY 2016-17 FPSC approved a water and wastewater price index of 1.29%.

 

Staff was not able to develop proposed water, wastewater, and reclaimed water rates by applying the FPSC Price Index. The proposed rate increase is 2%, to amend the water, wastewater, and reclaimed rates, which are identified in Ordinance 16-15.  The proposed rates provide for changes to the customer charge, availability charge and consumption charge as identified below:

 

Water:

 

Customer Charge Existing Proposed  
   $7.66 $7.81 per month 
       
Residential Service Existing Proposed  
Tier 1 (0-4,000 gallons) $1.81 $1.85 per 1,000 gallons
Tier 2 (4,001 - 8,000 gallons) $2.36 $2.41 per 1,000 gallons 
Tier 3 (8,001 gallons and above) $3.54  $3.61  per 1,000 gallons
       
Non-Residential Service Existing  Proposed  
Tier 1 (all consumption) $2.36 $2.41 per 1,000 gallons 
       
Irrigation Service Existing Proposed  
 Tier 1 (all consumption) $3.54  $3.61  per 1,000 gallons 
       
Availability Charge Existing Proposed  
5/8" x 3/4" $1.00 $1.02 per month
$2.56  $2.61  per month 
1 1/2 $5.76 $5.88 per month 
2 $10.24 $10.44 per month 
3 $23.04 $23.50 per month 
4 $40.96 $41.78 per month 
6 $92.16 $94.00 per month 
8 $163.84 $167.12 per month 

 

Wastewater:

 

Customer Charge Existing Proposed
$10.04 $10.24 per month
Residential Service Existing Proposed
  $5.27 $5.38 per 1,000 gallons
       
Non-Residential Service Existing Proposed  
$7.33 $7.48 per 1,000 gallons
   

 

Reclaimed Water:

 

Customer Charge Existing Proposed  
  $7.54 $7.69 per month
       
Consumption Charge Existing Proposed  
  $.69 $.70 per 1,000 gallons

 

 

The City Commission held a workshop to review utility rates on July 11, 2016.  Notices were issued through the City's utility billing system in accordance with Florida Statute 180.136

 

The City Commission approved Ordinance 16-15 by a 5-0 vote on first reading on July 25, 2016.

 
FINANCIAL IMPACT: Yes
BUDGETED: Yes
FUNDING SOURCE:  Water Fund, Waste Water Fund
 
COMMISSION GOALS:
Strengthen Community Services

 
ATTACHMENTS:
Description
Ordinance 16-15 Utility Rates - Water, Wastewater and Reclaimed
Ordinance 16-15 Utility Rates - Water, Wastewater and Reclaimed Clean
Public Service Commission Index
Ordinance 16-15 Published Notice
Utility Rates Presentation
Ordinance 16-15 SIGNED