Subject:
Title
Resolution revising retail water, wholesale water, retail sewer, wholesale sewer, retail reclaimed water, and wholesale reclaimed water rates.
label
Recommended Action:
Recommended Action
Approval of the Utilities Rate Resolution for Fiscal Year (FY) 2020 through FY 2023 adopting revised rates for retail water, wholesale water, retail sewer, wholesale sewer, retail reclaimed water, and wholesale reclaimed water.
• Recommendation stems from data presented by the long-range Utilities rate study, conducted by a third party professional firm.
• Retail and wholesale water rates are recommended to increase 1.0% each year for the next four years.
(1.) No increase to water usage charge for retail customers
(2.) No increase to customers with 5/8” or ¾” meter (92% of customer base)
(3.) Phase-in of higher base charge for large meter sizes
• Retail and wholesale sewer rates are recommended to increase 9.5% each year for the next four years.
• Retail and Wholesale reclaimed water rates are recommended to increase 11.63%, 6.75%, 5.9%, and 5.58% over the next four years.
• Increasing rates will contribute to long-term fiscal sustainability of Utilities operations.
Body
Strategic Plan:
Practice Superior Environmental Stewardship
3.3 Protect and improve the quality of our water, air, and other natural resources
Foster Continual Economic Growth and Vitality
4.4 Invest in infrastructure to meet current and future needs
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
This action is a Utilities Rate Resolution for FY20 - FY23. The resolution provides for an annual increase in the retail water, wholesale water, retail sewer, wholesale sewer, retail reclaimed water, and wholesale reclaimed water rates.
Background Information:
The Utilities Department contracted with Stantec to perform a long-range rate study for the water, sewer, and reclaimed water systems. This study examined the revenue requirements needed for operating costs, capital costs, debt service, and required reserves. The study also examined the allocation of costs between retail and wholesale customers, fixed and variable charges, and the current rate design structure. The results of the study were presented to the Board of County Commissioners (BCC), with a formal recommendation to increase rates from FY20 through FY23. The increases would become effective on October 1 of each fiscal year. The recommended rate increases are needed to meet the revenue requirements of the Water and Sewer Funds, as identified and detailed in the rate study.
Fiscal Impact:
WATER
Retail Water Rates:
The proposed rate adjustment for Retail Water is an increase of:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
1.00% |
1.00% |
1.00% |
1.00% |
Retail Volumetric Rate per 1,000 gallons (no change)
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$5.13 |
$5.13 |
$5.13 |
$5.13 |
$5.13 |
Base Rate Charge* per month
|
METER SIZE |
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
¾ inch |
$6.80 |
$6.80 |
$6.80 |
$6.80 |
$6.80 |
|
1 inch |
$6.80 |
$9.35 |
$11.90 |
$14.45 |
$17.00 |
|
1.5 inch |
$6.80 |
$13.60 |
$20.40 |
$27.20 |
$34.00 |
|
2 inch |
$6.80 |
$18.70 |
$30.60 |
$42.50 |
$54.40 |
|
3 inch |
$6.80 |
$32.30 |
$57.80 |
$83.30 |
$108.80 |
|
4 inch |
$6.80 |
$47.60 |
$88.40 |
$129.20 |
$170.00 |
|
6 inch |
$6.80 |
$90.10 |
$173.40 |
$256.70 |
$340.00 |
|
8 inch |
$6.80 |
$141.10 |
$275.40 |
$409.70 |
$544.00 |
*The Base Rate Charge is billed bi-monthly for each customer whether the water is on or off.
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
$713,025 |
$722,482 |
$732,049 |
$741,725 |
Wholesale Water Rates:
The proposed rate adjustment for Wholesale Water is an increase of:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
1.00% |
1.00% |
1.00% |
1.00% |
Wholesale Volumetric Rate per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$4.1329 |
$4.1742 |
$4.2159 |
$4.2581 |
$4.3007 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
$33,955 |
$139,319 |
$141,166 |
$143,035 |
SEWER
Retail Sewer Rates:
The proposed rate adjustment for Retail Sewer is an increase of:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
9.50% |
9.50% |
9.50% |
9.50% |
Retail Volumetric Rate per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$4.99 |
$5.46 |
$5.98 |
$6.55 |
$7.17 |
Base Rate Charge** per month:
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$13.66 |
$14.96 |
$16.38 |
$17.94 |
$19.64 |
**The Base Rate Charge is billed bi-monthly for each customer whether the water is on or off. The Volumetric Cap for Single Family Residences is 10,000 gallons per month. The Equivalent Residential Unit (ERU) for Commercial accounts is 5,000 gallons per month.
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
$5,926,522 |
$6,512,814 |
$7,155,879 |
$7,861,214 |
Wholesale Sewer Rates:
The proposed rate adjustment for Wholesale Sewer is an increase of:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
9.50% |
9.50% |
9.50% |
9.50% |
Wholesale Volumetric Rate per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$4.3049 |
$4.7139 |
$5.1617 |
$5.6521 |
$6.1890 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
$831,741 |
$914,360 |
$1,005,016 |
$1,104,482 |
RECLAIMED WATER
The proposed rate adjustment for total Reclaimed Water is an increase of:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
11.63% |
6.25% |
5.90% |
5.58% |
Retail Reclaimed Water Rates:
Retail Funded Systems Un-Metered Service (no change)
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$22.00 |
$22.00 |
$22.00 |
$22.00 |
$22.00 |
Retail Funded Systems Metered Service per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$1.16 |
$1.47 |
$1.47 |
$1.47 |
$1.47 |
Retail Unfunded Systems Un-Metered Service
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$16.00 |
$17.50 |
$19.00 |
$20.50 |
$22.00 |
Retail Unfunded Systems Metered Service per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$1.16 |
$1.47 |
$1.47 |
$1.47 |
$1.47 |
Retail Reclaimed Metered Service Interruptible rate per 1,000 gallons (retail contracts)
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$0.121 |
$0.139 |
$0.160 |
$0.184 |
$0.212 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
$668,871 |
$401,305 |
$402,164 |
$403,153 |
Wholesale Reclaimed Water Rates:
City of South Pasadena Wholesale Metered Service per 1,000,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$116.06 |
$212.05 |
$308.03 |
$404.02 |
$500.00 |
Town of Belleair Wholesale Metered Service per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$0.121 |
$0.139 |
$0.160 |
$0.184 |
$0.212 |
City of St. Pete Beach Wholesale Metered Service per 1,000,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$116.06 |
$212.05 |
$308.03 |
$404.02 |
$500.00 |
City of Pinellas Park Wholesale Metered Service per 1,000 gallons
|
CURRENT |
FY20 |
FY21 |
FY22 |
FY23 |
|
$0.2375 |
$0.3031 |
$0.3688 |
$0.4344 |
$0.5000 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY20 |
FY21 |
FY22 |
FY23 |
|
$40,069 |
$24,040 |
$24,093 |
$24,152 |
Staff Member Responsible:
Megan Ross, Director, Utilities
Lori Sullivan, Budget & Financial Management Analyst, Office of Management and Budget
Partners:
N/A
Attachments:
Utilities Rate Resolution
Stantec Rate Study Report
Stantec Rate Study Presentation
Public Hearing Notice