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08-28-00 Attachment A v ATTACHMENT A AUGUST 28, 2000 COMMISSION MEETING • August 28, 2000 City Commission City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 Re: Proposed Utilities Rate Increase City of Atlantic Beach Dear Commissioners: A fourteen percent increase in the Atlantic Beach water and sewer utilities rates has been proposed by the new City Man- ager and the Public Works Director. If the fourteen percent rate increase is enacted by the City Commission, the increase in revenue will exceed $800,000. per year. A slide show presentation to the City Commission indicated . no significant change in the amount of water sold and waste water treated. Likewise, no significant change in revenue received over the past several years. However, the "operating costs" had steadily increased over the same period of time. Additionally, (on Page 97 of the proposed Annual Budget) the "Estimate 1999-2000 total water and sewer Revenues" is LESS than the "Actual 1997-1998 Revenues" and LESS than the "Actual 1998-1999Revenues . The Budget presentation obviously omitted the City Manager reported $540,000. INCREASE in revenues that resulted from the drought of 2000. It is my opinion that the Public Works Director and the City Manager should prudently and competently examine the escalating "operating costs" and eliminate wastes therein before imposing higher utility rates on the "captive customers". Resp-1, , A ' , . oSr ' 3'f4 Second St., Atlantic Beach • (904) 249-9954 Public Works • Combined Summary Expenditures 410 PROPOSED ACTUAL ACTUAL ESTIMATE BUDGET INCREASE 1997-98 1998-99 1999-2000 2000-2001 DECREASE Revenues: General Fund Resources 604,119 804,526 1,007,907 631,955 (375,952) Local Option Gas Tax 477,632 512,460 542,190 548,159 5,969 Water Utility 2,299,960 2,274,465 2,223,747 2,265,312 41,565 Sewer Utility 3,528,754 3,473,615 3,523,939 4,214,823 690,884 Sanitation Utility 1,102,172 1,129,568 1,198,867 1,203,444 4,577 Storm Water Utility 511,577 983,545 298,785 837,450 538,665 Bond Construction 486,883 475,982 400,000 300,000 (100,000) Internal Service Charges 471,207 521,962 563,678 639,409 75,731 Total Revenues 9,482,304 10,176,123 9,759,113 10,640,552 881,439 Expenditures: Public Works Administration 283,799 306,929 348,071 394,373 46,302 Street&Road Maintenance 604,119 804,526 1,007,907 631,955 (375,952) Local Option Gas Tax 85,227 237,417 392,469 1,651,959 1,259,490 Water Utility 2,122,766 2,449,978 3,169,913 2,127,724 (1,042,189) 11 Sewer Utility 3,102,412 3,645,613 5,784,120 3,868,476 (1,915,644) Sanitation Utility 1,072,640 1,056,769 1,093,488 1,215,576 122,088 Storm Water Utility 391,746 559,393 597,335 1,274,520 677,185 Bond Construction 1,002,303 1,627,423 1,326,997 6,617,081 5,290,084 Fleet Maintenance 245,036 221,389 215,607 245,036 29,429 Total Expenses 8,910,048 10,909,437 13,935,907 18,026,700 4,090,793 Resource Allocation Personal Services 1,473,777 1,548,143 1,546,654 1,630,461 83,807 Operating Expenses 3,659,879 4,247,606 4,151,513 4,553,075 401,562 Capital Outlay 1,284,885 2,406,011 5,799,358 9,489,316 3,689,958 Debt Service 1,283,019 1,350,625 1,699,760 1,681,889 (17,871) Transfers 1,208,488 1,357,052 738,622 671,959 (66,663) Total Expenses 8,910,048 10,909,437 13,935,907 18,026,700 4,090,793 lilib 97