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Item 7EAGENDA ITEM # 7E SEPTEMBER 8, 2008 STAFF REPORT City of Atlantic Beach Commission Meeting AGENDA ITEM: Storm Water Utility Rate Increase ORDINANCE NUMBER 80-08-77 DATE: September O1, 2008 SUBMITTED BY: Nelson Van Liere, Finance Director BACKGROUND: During the development of the proposed operating budget for the fiscal year ended September 30, 2009, it was determined that the best solution for funding the rising costs of providing storm water utility services is an increase to the rates. A one dollar per ERU per month increase is proposed to help fund ongoing operations and existing debt service for the utility. The Public Works Department has also experienced an increase in the point repairs specifically in the Royal Palms subdivision. The City plans to rebuild the drainage system in that area without any additional debt service. The utility is over dependant on transfers from other revenue sources to fund its current operations. It is the City's long term goal to someday fund all operations of the utility with its own rates. BUDGET: The estimated budget impact on storm water revenues of the proposed one dollar rate increase per ERU per month is $96,000. RECOMMENDATION: Approve Ordinance 80-08-77 ATTACHMENTS: Ordinance 80-08-77 REVIEWED BY CITY MANAGER: AGENDA ITEM # 7E SEPTEMBER 8, 2008 ORDINANCE NO. 80-08-77 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA INCREASING THE MONTHLY STORM WATER UTILITY FEE BY AMENDING CHAPTER 22 UTILITIES, ARTICLE IV, STORM WATER MANAGEMENT, DIVISION 2 RATES AND CHARGES, SECTION 22-335 FEES; PROVIDING FOR INTENT; PROVIDING FOR THE ADOPTION OF A NEW RATE; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has determined that it is necessary increase the storm water fees for the purpose of generating sufficient revenues to fund current operating costs and to lessen the dependence on transfers from other funds, and; WHEREAS, the proposed storm water budget for fiscal year ended September 30, 2009 includes a one dollar increase in the storm water utility fee ,and WHEREAS, it is the City's long term goal to someday recover the entire cost of the storm water utility through user fees. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; SECTION I. Intent It is the intent of the City of Atlantic Beach, Florida to raise the monthly fee for storm water utility services from $4.00 to $5.00 per equivalent residential unit (ERU) per month. SECTION 2. Section 22-335 Fees; is amended as follows: Sec 22-335. Fees (a) ER U rate The fee per ERU billing unit shall be fenr~lello~$4:983 five dollars ($5.00) per month. SECTION 3. 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. AGENDA ITEM # 7E SEPTEMBER 8, 2008 SECTION 4. Effective Date This Ordinance shall take effect upon its final passage and adoption. Passed by the City Commission on first reading this Passed by the City Commission on first reading this John S. Meserve Mayor /Presiding Officer Approved as to form and correctness: ATTEST: Alan C. Jensen, Esquire Day of September, 2008. Day of September, 2008. Donna Bartle City Attorney City Clerk