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 2016 for the Fiscal Year 2017 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 2017-18 FPSC approved a water and wastewater price index of 1.51%.
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 17-12. The proposed rates provide for changes to the customer charge, availability charge and consumption charge as identified below:
Water:
| Customer Charge |
Existing |
Proposed |
|
| |
$7.81 |
$7.97 |
per month |
| |
|
|
|
| Residential Service |
Existing |
Proposed |
|
| Tier 1 (0-4,000 gallons) |
$1.85 |
$1.89 |
per 1,000 gallons |
| Tier 2 (4,001 - 8,000 gallons) |
$2.41 |
$2.46 |
per 1,000 gallons |
| Tier 3 (8,001 gallons and above) |
$3.61 |
$3.68 |
per 1,000 gallons |
| |
|
|
|
| Non-Residential Service |
Existing |
Proposed |
|
| Tier 1 (all consumption) |
$2.41 |
$2.46 |
per 1,000 gallons |
| |
|
|
|
| Irrigation Service |
Existing |
Proposed |
|
| Tier 1 (all consumption) |
$3.61 |
$3.68 |
per 1,000 gallons |
| |
|
|
|
| Availability Charge |
Existing |
Proposed |
|
| 5/8" x 3/4" |
$1.02 |
$1.04 |
per month |
| 1 |
$2.61 |
$2.66 |
per month |
| 1 1/2 |
$5.88 |
$6.00 |
per month |
| 2 |
$10.44 |
$10.65 |
per month |
| 3 |
$23.50 |
$23.97 |
per month |
| 4 |
$41.78 |
$42.59 |
per month |
| 6 |
$94.00 |
$95.88 |
per month |
| 8 |
$167.12 |
$170.46 |
per month |
Wastewater:
| Customer Charge |
Existing |
Proposed |
|
|
$10.24 |
$10.44 |
per month |
|
|
|
|
| Residential Service |
Existing |
Proposed |
|
| |
$5.38 |
$5.49 |
per 1,000 gallons |
| |
|
|
|
| Non-Residential Service |
Existing |
Proposed |
|
|
$7.48 |
$7.63 |
per 1,000 gallons |
|
|
|
Reclaimed Water:
| Customer Charge |
Existing |
Proposed |
|
| |
$7.69 |
$7.84 |
per month |
| |
|
|
|
| Consumption Charge |
Existing |
Proposed |
|
| |
$0.70 |
$0.71 |
per 1,000 gallons |
The City Commission held a workshop to review utility rates on July 24, 2017. Notices were issued through the City's utility billing system in accordance with Florida Statute 180.136 | | |