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File #: 19-593A    Version: 1
Type: Resolution Status: Passed
File created: 4/12/2019 Department: Board of County Commissioners
On agenda: 5/21/2019 Final action: 5/21/2019
Title: Resolution revising retail water, wholesale water, retail sewer, wholesale sewer, retail reclaimed water, and wholesale reclaimed water rates.
Attachments: 1. Adopted RES 19-35, 2. Resolution - AATF, 3. Rate Resolution.pdf, 4. Affidavit of Publication - Notice of Public Hearing, 5. Stantec Rate Study Presentation, 6. Public Hearing Notice, 7. Stantec Rate Study Report.pdf

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