Subject:
Title
Resolution adopting revised retail water, wholesale water, retail sewer, wholesale sewer, retail reclaimed water, and wholesale reclaimed water rates.
label
Recommended Action:
Recommended Action
Hold a public hearing and approve the Utilities Rate Resolution for Fiscal Year (FY) 2024 through FY27 adopting revised rates for retail water, wholesale water, retail sewer, wholesale sewer, retail reclaimed water, and wholesale reclaimed water.
• Recommendations stem from data presented by the Long-Range Utilities Rate Study, conducted by a third-party professional firm, Stantec.
• Retail and Wholesale Water rates are recommended to increase a net of 5.0% each year for the next four years, as follows:
1.) FY24 residential block rate of $3.83/1,000 gallons for use up to 4,000 gallons/month (Reduced from $5.13/1,000 gallons for use up to 4,000 gallons/month)
2.) FY24 residential block rate of $8.69/1,000 gallons above 4,000 gallons/month
(Increased from $5.13/1,000 gallons above 4,000 gallons/month)
3.) Phase-in of higher base charge for all meter sizes
• Retail and Wholesale Sewer rates are recommended, as follows:
1.) Retail Volumetric Rate - 4% per year each year for the next four years (Increased from $7.17/1,000 gallons to $7.46/1,000 in FY24.
2.) Wholesale sewer rates will not change over the next four years.
• Retail and Wholesale Reclaimed Water rates are recommended, as follows:
1.) Retail increases of 5.2%, 5.0%, 5.1%, and 5.2%, respectively, over the next four years.
2.) Wholesale reclaimed water rates are recommended to increase 15% each year over the next four years.
• Increasing rates will contribute to long-term fiscal sustainability of Utilities operations and continue to fund much-needed infrastructure improvements and assure regulatory compliance.
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:
Summary
This action is a Utilities Rate Resolution for FY24 - FY27. The resolution provides for an annual increase in the retail water, wholesale water, retail sewer, retail reclaimed water, and wholesale reclaimed water rates.Body
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 FY24 through FY27. 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 Residential Volumetric Rate per 1,000 gallons for use up to 4,000 gallons per month would be:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
-25% |
3% |
3% |
3% |
The proposed rate adjustment for Residential Volumetric Rate per 1,000 gallons for use over 4,000 gallons per month would be an increase of:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
69% |
3% |
3% |
3% |
Residential Volumetric Rate per 1,000 gallons up to 4,000 per month
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$5.13 |
$3.83 |
$3.93 |
$4.05 |
$4.19 |
Residential Volumetric Rate per 1,000 gallons above 4,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$5.13 |
$8.69 |
$8.94 |
$9.21 |
$9.51 |
Non-Residential Volumetric Rate per 1,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$5.13 |
$5.26 |
$5.41 |
$5.57 |
$5.76 |
Water Base Rate Charge* per month
|
METER SIZE |
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
¾ inch |
$6.80 |
$8.05 |
$9.30 |
$10.55 |
$11.80 |
|
1 inch |
$17.00 |
$20.13 |
$23.25 |
$26.38 |
$29.50 |
|
1.5 inch |
$34.00 |
$40.25 |
$46.50 |
$52.75 |
$59.00 |
|
2 inch |
$54.40 |
$64.40 |
$74.40 |
$84.40 |
$94.40 |
|
3 inch |
$108.80 |
$128.80 |
$148.80 |
$168.80 |
$188.80 |
|
4 inch |
$170.00 |
$201.25 |
$232.50 |
$263.75 |
$295.00 |
|
6 inch |
$340.00 |
$402.50 |
$465.00 |
$527.50 |
$590.00 |
|
8 inch |
$544.00 |
$644.00 |
$744.00 |
$844.00 |
$944.00 |
*The Water Base Rate Charge is billed bi-monthly for each customer whether the water is on or off.
The proposed rate adjustment based on 5,000 gallons per month, is anticipated to generate additional revenue as follows:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
$3,936,692 |
$4,169,169 |
$4,386,383 |
$4,614,913 |
Wholesale Water Rate:
The proposed rate adjustment for Wholesale Water is an increase of:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
5% |
5% |
5% |
5% |
Wholesale Volumetric Rate per 1,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$4.3007 |
$4.5157 |
$4.7415 |
$4.9786 |
$5.2275 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
$804,210 |
$846,110 |
$890,192 |
$936,571 |
SEWER
Retail Sewer Rates:
The proposed rate adjustment for Retail Sewer is an increase of:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
4% |
4% |
4% |
4% |
Retail Volumetric Rate per 1,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$7.17 |
$7.46 |
$7.76 |
$8.07 |
$8.39 |
Base Rate Charge** per month:
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$19.64 |
$20.43 |
$21.25 |
$22.10 |
$22.98 |
**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:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
$3,016,808 |
$3,159,082 |
$3,292,016 |
$3,430,544 |
Wholesale Sewer Rates:
Wholesale Volumetric Rate per 1,000 gallons (No Change)
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$6.1890 |
$6.1890 |
$6.1890 |
$6.1890 |
$6.1890 |
RECLAIMED WATER
Retail Reclaimed Water Rates:
*All reclaimed customers will be metered by FY27
The proposed rate adjustment for Retail Reclaimed Water is an increase of:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
5.2% |
5.0% |
5.1% |
5.2% |
Retail Volumetric Allowance All Users
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
Unlimited |
20,000 |
18,000 |
16,000 |
15,000 |
Retail Unfunded (Availability Charge) Systems Service User Fee
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$29.00 |
$30.00 |
$31.00 |
$32.00 |
$33.00 |
Retail Unfunded (Availability Charge) Systems Metered Service
Volumetric Rate Per 1,000 gallons over volumetric allowance
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
1.47 |
$1.69 |
$1.94 |
$2.23 |
$2.56 |
Monthly: Availability Charge (not connected for service) $7.00
Retail Funded (No Availability Charge) Systems User Fee
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$22.00 |
$23.00 |
$24.00 |
$25.00 |
$26.00 |
Retail Funded (No Availability Charge) Systems Metered Service
Volumetric Rate Per 1,000 gallons over volumetric allowance
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
1.47 |
$1.69 |
$1.94 |
$2.23 |
$2.56 |
Retail Reclaimed Metered Service Interruptible rate per 1,000 gallons (retail contracts)
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$0. 212 |
$0.2438 |
$0.2804 |
$0.3224 |
$0.3708 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
$347,068 |
$352,368 |
$380,884 |
$409,536 |
Wholesale Reclaimed Water Rates:
The proposed rate for Wholesale Reclaimed Water is an increase of:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
15% |
15% |
15% |
15% |
Town of Belleair Wholesale Metered Service per 1,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$0. 212 |
$0.2438 |
$0.2804 |
$0.3224 |
$0.3708 |
City of South Pasadena Wholesale Metered Service per 1,000,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$500.00 |
$575.00 |
$661.25 |
$760.43 |
$874.50 |
City of St. Pete Beach Wholesale Metered Service per 1,000,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$500.00 |
$575.00 |
$661.25 |
$760.43 |
$874.50 |
City of Pinellas Park Wholesale Metered Service per 1,000 gallons
|
CURRENT |
FY24 |
FY25 |
FY26 |
FY27 |
|
$0.5000 |
$0.5750 |
$0.6613 |
$0.7604 |
$0.8745 |
The proposed rate adjustment is anticipated to generate additional revenue as follows:
|
FY24 |
FY25 |
FY26 |
FY27 |
|
$150,854 |
$173,482 |
$199,505 |
$229,431 |
Staff Member Responsible:
Jeremy Waugh, Interim Director, Utilities
Partners:
N/A
Attachments:
Utilities Rate Resolution
Stantec Rate Study Report
Stantec Rate Study Presentation
Public Hearing Notice