Item 7EAGENDA ITEM # 7E
SEPTEMBER 10, 2007
STAFF REPORT
City of Atlantic Beach
Commission Meeting
AGENDA ITEM: Utility Rate Increase ORDINANCE NUMBER 80-07-74
DATE: August 31, 2007
SUBMITTED BY: Nelson Van Liere, Finance Director
BACKGROUND: During the development of the Proposed Operating Budget for the
fiscal year ended September 30, 2008, staff estimated that a ten
percent water and sewer rate increase would be necessary to fund
the ongoing operations of the utility and to provide enough
revenues for the additional debt service required to fund the
planned capital improvements. Rising costs and slumping
revenues have combined to virtually put a halt to future capital
improvements without this needed rate adjustment. The FY2008
Proposed Budget includes an estimate for the reduction in cash
balance of the utilities of $305,797 even with the rate increase.
This proposed ordinance also adjusts the water and sewer rates by
ten percent effective in October of 2008 and again in October of
2009 as was presented in the Long Term Financial Plan during the
recent budget workshops. The proposed financing plan includes
borrowing eleven million dollars over the next three years. The
adoption of a three year rate adjustment plan will enable the City
flexibility to borrow the funds when needed to move forwazd with
the Capital Projects as planned and approved by the Mayor and
Commission. The projects include the mandated sewer plant
upgrades necessary to meet new standards for the treatment of
water being discharged into the St. Johns River. The projects also
include a lift station upgrade and a water well replacement.
BUDGET: The budget impact of the proposed ten percent increase is
approximately $585,991 of additional revenues. This amount is
already included in the FY2008 Proposed Operating Budget.
RECOMMENDATION: Approve Ordinance No. 80-07-74
ATTACHMENTS: Ordinance No. 80-07-74
REVIEWED BY CITY MANAGER:
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AGENDA ITEM # 7E
SEPTEMBER 10, 2007
ORDINANCE NO. 80-07-74
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES,
ARTICLE II, SECTION 22-27 CHARGES FOR WATER
SERVICE, TO INCREASE THE WATER BASE AND
VOLUME CHARGES FOR RESIDENTIAL, IRRIGATION
AND COMMERCIAL CUSTOMERS: AMENDING
ARTICLE III WASTEWATER SYSTEM, DIVISION SEVEN,
SEWER USER RATES AND CHARGES, SECTION 22-166
MONTHLY WASTEWATER BASE FACILITY CHARGES
TO INCREASE RESIDENTIAL AND COMMERCIAL BASE
CHARGE RATES; AND AMENDING SECTION 22-167
SCHEDULE OF WASTEWATER VOLUME CHARGES TO
INCREASE THE RATES FOR WASTEWATER VOLUME
CHARGES FOR RESIDENTIAL AND COMMERCIAL
CUSTOMERS.
WHEREAS, the City has determined that it is necessary increase the water and
sewer rates for the purpose of generating sufficient revenues to fund current operating
costs, and;
WHEREAS, the City, as the result of legislation being passed by the Deparhnent
of Environmental Protection, will be required to upgrade the sewer treatment facilities in
order to meet new standazds for effluent discharges to the St. Johns River. These rate
increases will provide funding for the debt service on this and other smaller projects
related to the water and sewer systems.
WHEREAS, the proposed Public Utility's Budget for the fiscal yeaz ended
September 30, 2008 includes a ten percent increase in the utility rates. The ten yeaz Long
Term Financial Plan includes additional ten percent increases in fiscal yeazs 2009 and
2010. Approving rate increases effective in these subsequent years is necessary to cover
the additional debt service that will be required to pay for the plant upgrades, and
WHEREAS, the city has had declining sales of water due to conservation causing
a reduction in revenues needed to meet upcoming operating needs and the debt service
coverage ratios required by the City's bond ordinance, and
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
that;
SECTION I. Chapter 22 Utilities, of the Code of Ordinances of the City of Atlantic
Beach, Florida is hereby amended to read as follows:
AGENDA ITEM # 7E
SEPTEMBER 10, 2007
Article II, Waterworks System:
Sec. 22-27. Charges for water service.
The reasonable rates, rentals, fees and other charges for the use of the services and
facilities of the city waterworks system are hereby found and determined to be and are
hereby fixed and established as follows:
(1) Monthly water base facility charges for customers inside the city: A monthly
water base facility charge will be levied upon each connection in accordance with the
following table:
R13S%dentfal Effective Effective Effective
October 1, 2007 October 1, 2008 October 1, 2009
Single-family
residential and
single-family ~~~ $7.41 per account $8.15 per account $8.97 per account
individual-metered
mobile homes
Multifamily
residential $~~ $5.56 per unit $6.1 l per unit $6.73 per unit
Master-metered
mobile homes ~~''~~~ $5.56 per site $6.1 l per site $6.73 per site
Travel trailers ~5:96-~r-site $5.56 per site $6.11 per site $6.73 net site
HoteUmotel ~3:86-peF-teems $5.56 per room $b.l l per room $6.73 per room
HoteUmotel with
&3:96-per-Fees $S.Sb per room $b.l l per room $6.73 per room
kitchen
Commercial
Master-metered
commercial ~'~"~~ $7.41 .unit $8.15_ er unit $8.97 per unit
Restaurants,
laundrie
and car ~ Based on meter size Bases) on meter size Based on meter size
s, ale-l~eletiv phase m table below phase in table below phase in table below
wash connections
All other
comme
i
l Based on meter size Based on meter size Based on meter size
rc
a ~ebl~ilelew phase in table below Qhase in table below phase in table below
customers
Irrigation
All Residential ~~4-perr~aseeortE $7.41 per account $8.15 per account 58.97 per account
~ Based on meter size Based on meter size Based on meter size
All Commercial
ukase-ie4sbie~belerv phase in table below phase in table below phase in table below
Water base facility charges for the commercial classifications are based upon the meter
size and they will become effective as follows:
Meter Size
(in inches) Effective
October 1, 2007 active
October 1.2008 ffective
October 1.2009
518 or'/. -x-74 7.41 8.15 8.97
AGENDA ITEM # 7E
SEPTEMBER 10, 2007
1 -X8:43- 9.27 X10.20 11.22
1 '/z -$168.3- 18.54 20.39 22.43
2 X6:94 29.63 2.59 35.85
3 -1;-33$4- 59.28 65.21 71.73
4 -1;84:1- 92.63 101.89 112.08
6 -~-168h2 185.26 2 3.79 224.17
8 -19:47 296.42 326.06 358.67
(2) Schedule of water volume charges for customers inside the city:
a. Single units. There are hereby-established inclining block volume charges for
single-family residential and single-family individual-metered mobile homes, per account
as follows:
Bock Upper LMtit
(GaNons per 11/onlh) Race ~ Thousand
Ga(bns Effective
October 1.2008 Effective
October 1.2009
1 3,000 ~3 0.25 0.28 0.31
2 8,000 51-84 52.02 2.22 2.44
3 13,000 x-16 2.38 2.62 2.88
4 18,000 X3:24 3.56 3.92 .31
5 Over 18,000 $4~8 5.3 5.91 6.50
b. Multiple units and commercial accounts. 'There are hereby-established an
inclining block volume charge for all multiunit residential and multiunit commercial
accounts as follows:
Block Upper Limit
Gallons per Month Rate per Thousand Effective Effective
(per unit) Gallons October 1, 2008 October i. 2009
1 2,000 $A:23 0.25 0.28 0.31
2 Over 2,000 $-1-84 2.02 2.22 2.44
c. Single unit irrigation. 'There are hereby-established an inclining block irrigation
volume charge for all single-family residential and single-family individual-metered
mobile homes, per account as follows:
Block Upper Limit
(Gallons per gate per Thousand Effective Effective
Mouth) Gallons October 1.2008 October 1.2009
1 13,000 $2-16 2.3 2.62 2.88
2 18,000 $324 3.56 3.92 .31
3 Over 18,000 54:88 5.37 5.91 6.50
AGENDA ITEM # 7E
SEP'T'EMBER 10, 2007
d. Multiple unit and commercial irrigation. There are hereby established an
inclining block volume charge for all multiunit residential irrigation accounts and all
commercial irrigation accounts as follows:
Block Upper Limit
(Gallons per Rate per Thousand Effective ffective
Month) Gallons October 1.2008 October 1.2009
1 3,000 X9:23 0.25 0.28 0.31
2 Over 3,000 ;$1:54 2.02 2.22 2.44
(3) Customers outside the city. The rates applicable to customers outside of the city
shall be one and one-quarter (1.25) times the rates above for both monthly water base
facility charges and water volume charges.
ARTICLE III WASTEWATER SYSTEM
Division Seven, Sewer user rates and charges,
Sec. 22-166. Monthly wastewater base facility charges.
Wastewater base facility charges will be levied monthly as follows:
(a) Monthly wastewater base facility charge for customers inside the city. A
monthly base charge will be levied upon each connection in accordance with the
following:
An equivalent residential unit (ERU) is defined as a wastewater connection that delivers
three hundred (300) gallons per day (gpd) of typically domestic wastewater flow to the
waste stream, or equivalent to a residence serviced by athree-fourths-inch water meter.
~~~ Effective
October 1, 2007 Effective
October 1.2008 Effective
October 1.2009
Single-family residential and
single-family individual-metered
~}q;;g.pe~asseunt
$15.51 cer arxoun~
$17.06 cer account
$18.77 aer account
mobile homes, per account
Multffamily rnsidenti~, per unit $~-per-uAit $11.64 oer unit $12.80 oer unit $14.08 ner unit
Master-metered mobile homes Wiper-bite X11.64 oer site $12.80 ner site $14.08 oer site
Travel trailers $r~:4~-peF-site X9.32 oer site $10.25 oer site $11.28 cer site
HoteUmotel ~:8i3-per-reen+ $7.77 oer room $8.55 p~ $9.41 oer room
Hotelhr-otel with kitd~en -i>i-0~-per~em $9.32 oer room $10.25 oe~ room $11.28 per room
Commercial
Master~netered commeraal ~3~4:48-peF~it $15.61 per unit $17.06 cer unit $18.77 per unit
Restaurants, laundries, and car
wash connections gt4~9-~Pkl4aster $15.51 x ERU factor $17.06 x ERU factor $18.77 x ERU factor
All other oommeraal customers ~~#aster X15.51 x ERU factor $17.06 X ERU factor $18.77 x ERU factor
AGENDA ITEM # 7E
SEPTEMBER 10, 2007
The ERU factor for the commercial classification is based upon meter size as follows:
Meter Size (In inches) ERU factor
5/8 X'/. 1.00
1 1.28
1 %: 2.08
2 2,88
3 5.60
4 10.00
6 20.00
8 30.00
(b) Customers outside the city. The rates applicable to customers outside of the city
shall be one and one-quarter (1.25) times the rates above.
', Sec. 22-167. Schedule of wastewater volume charges.
(a) Customers inside the city. There are hereby established block volume charges for
customers inside the city as follows:
(1) Single-family residential and single-family individual-metered mobile homes, per
account as follows:
Block Upper Limit
(Gallons per
M
h Rate per
Thousand
ll
G Effective
October 1.20(17 Effective
Octobec 1.20 Effective
October 1.2009
ont
) ons
a
1 3,000 SA:4-'~ .52 0.57 0.63
2 13,000 Vii- 4.30 4.73 5.20
3 Over 13,000 $0.00 0.00 0.00 0.00
(2) Multiunit residential and all commercial units as follows:
Upper Limit
Block (Gallons per l~s~ d Effective ffective Effective
~~' per ll
G October 1.2007 October 1.2008 October i. 2009
Unit) ons
a
1 3,000 $A:4'~ 0.52 0.57 0.63
2 Over 3,000 ~t .30 .73 X20
(b) Customers outside the city. The rates applicable to customers outside of the city
shall be one and one-quarter (1.25) times the rates above.
AGENDA ITEM # 7E
SEPTEMBER 1Q 2007
SECTION 2. Severability
If any section, sentence, clause, or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in
no way affect the validity of the remaining portions of this ordinance.
SECTION 3. Effective Date
This Ordinance shall take effect upon its final passage and adoption.
Passed by the City Commission on first reading this Day of September,
2007.
Passed by the City Commission on first reading this Day of September,
2007.
Donald M. Wolfson
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna L. Bussey, CMC
City Clerk