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 2021 for the Fiscal Year 2022 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 that are sufficient to meet the expenses associated with providing utility service to our residents. Staff proposes increases in its water, wastewater, and reclaimed water rates and an increase in the water meter installation charge, water capital facility charges, and wastewater capital facility charges 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 adjustments that utility service providers should make to their rates to stay abreast of inflationary or deflationary pressures. The latest FPSC approved a water and wastewater price index of 4.53%.
Staff was not able to develop proposed water, wastewater, and reclaimed water rates by applying the FPSC Price Index. As identified in Ordinance 22-22, the proposed rate increases are:
- 6%, to amend the water rates, and
- 3%, to amend the wastewater, and reclaimed rates.
The proposed rates provide for changes to the customer charge, availability charge and consumption charge.
The proposed rate also includes 15% increase to amend the water meter installation charge and the associated capital facility charges for water and wastewater.
The City Commission held a workshop to review utility rates on July 24, 2022. Notices were issued through the City's utility billing system in accordance with Florida Statute 180.136.