Item 7A AGENDA ITEM # 7A
SEPTEMBER 13, 2010
STAFF REPORT
City of Atlantic Beach
Commission Meeting
AGENDA ITEM: Utility Rate Increase ORDINANCE NUMBER 80 -10 -80
DATE: September 13, 2010 Qr^�
SUBMITTED BY: Nelson Van Liere, Finance Director
BACKGROUND: During the development of the Proposed Operating Budget for the
fiscal year ended September 30, 2011, staff estimated that a six
percent Public Utility revenue increase would be necessary to fund
the debt service for the upcoming sewer system upgrades and the
increasing cost of ongoing operations. The revenue increase is
also necessary to generate enough revenues to meet the debt
covenants of our existing debt as a condition of borrowing
additional funds. The operating revenues of the system must cover
the annual debt service by 110 %. The FY2011 Proposed Budget
includes an estimate of an additional $400,000 in revenues.
This revenue increase will be obtained by increasing only the
sewer rates by 9 %, while holding the water rates the same. By
adjusting only the sewer rates, the overall affect on the average
customer's bill will be approximately a 6% increase.
The proposed financing plan includes borrowing approximately
$10 million dollars. The proposed budget shows half of those
funds being borrowed in the current year and about half in 2011.
Since the document was prepared, the timing of the new debt has
changed, moving all new debt into FY2011. The structure of the
debt agreements are still being worked out, but no additional debt
service will be paid until next year.
BUDGET: The budget impact of the proposed 9 percent increase in sewer
rates is approximately $400,000 of additional revenues. This
amount is already included in the FY2011 Proposed Operating
Budget.
RECOMMENDATION: Approve Ordinance 80 -10 -80
ATTACHMENTS: Ordinance 80 -10 -80
REVIEWED BY CITY MAl1$•
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
ORDINANCE NO. 80 -10 -80
AN ORDINANCE AMENDING CHAPTER 22 UTLL1TIES,
ARTICLE II, SECTION 22 -27 CHARGES FOR WATER
SERVICE, TO DELETE OLD RATES FORM THE RATE
TABLE IN THE CITY CODE: 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 DELETE THE OLD RATES; AND AMENDING SECTION
22 -167 SCHEDULE OF WASTEWATER VOLUME CHARGES
TO INCREASE THE RATES FOR WASTEWATER VOLUME
CHARGES FOR RESIDENTIAL AND COMMERCIAL
CUSTOMERS AND DELETE THE OLD RATES.
WHEREAS, the City, in conjunction with the adoption of the 2011 Annual
Operating Budget proposes an increase to the public utility rates sufficient to generate six
percent additional revenues, and;
WHEREAS, it has been determined that a six percent increase in revenues is
needed to meet the additional debt service required to fund the system improvements
budgeted to meet new environmental standards, and
WHEREAS, it has been determined that an approximately nine percent increase
in the sewer rates only will generate a six percent revenue increase for the utility as a
whole.
WHEREAS, the City has experienced declining sales due to conservation and a
reduction in the number customers further necessitating a rate increase, and
WHEREAS, this proposed ordinance deletes old rates within the code of
ordinances that are no longer in effect.
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:
Article II, Waterworks System:
Sec. 22 -27. Charges for water service.
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
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:
Effective Effective Effective
October 1, 2007 October 1, 2008 October 1, 2009
Residential
Single - family residential and
single - family individually - $.741-ate $88.15 -per account $8.97 per account
metered mobile homes
Multifamily residential 5.56 per unit 6.11 per unit 6.73 per unit
Master - metered mobile homes 5.56 per site 6.11 per site 6.73 per site
Travel trailers 5.56 per site 6.11 per site 6.73 per site
Hotel /motel 5.56 per room 6.11 per room 6.73 per room
Hotel /motel with kitchen 5.56 per room 6.11- perroom 6.73 per room
Commercial
Master - metered commercial 7/11 per unit 8.15 per unit 8.97 per unit
Baseden meter Based-en-meter Based on meter
Restaurants, laundries, and car sip e-phase-in4able size-phase-in-table size phase in table
wash connections below below below
All other commercial Based-en-meter Based-en-meter Based on meter
customers size-phase-in-table sip size phase in table
below below below
Irrigation
All residential 7/11 per account 8. to 5-per aeseunt 8.97 per account
Based -enter Based-en -meter Based on meter
All commercial si e ace in table size-phase-in-table size phase in table
below below below
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
Water base facility charges for the commercial classifications are based upon the meter
size and they will become effective as follows:
Meter Size Effective Effective Effective
in inches October 1, 2007 October 1, 2008 October 1, 2009
5/8 or 3/4 $7.41- $87-1 -5 $8.97
1 9.27 40.20 11.22
1 1/2 18.54 20739 22.43
2 29.63 32.59 35.85
3 59.28 6-5724 71.73
4 92.63 101.89 112.08
6 185.26 203.79 224.17
8 296.42 326.06 358.67
(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 individually- metered mobile homes, per
account, as follows:
Upper Limit Rate-per-1-000-Gallons Rate per 1000 gallons
Block Effective Effective
(Gallons per month) November-1-,-24G8 October 1, 2009
1 3,000 $0.60 $1.02
2 8,000 2.22 2.44
3 13,000 2:62 2.88
4 18,000 3792 4.31
5 Over 18,000 5.91 6.50
(b) Multiple units and commercial accounts: There is hereby established an inclining
block volume charge for all multiunit residential and multiunit commercial accounts as
follows:
R 1 000 r lions Rate per 1000 Gallons
Block Upper Limit Effective Effective
(Gallons per month)
October 1, 2009
1 2,000 $0.60 $1.02
2 Over 2,000 2.22 2.44
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
(c) Single unit irrigation: There is hereby established an inclining block irrigation
volume charge for all single - family residential and single - family individually- metered
mobile homes, per account, as follows:
Upper Limit Rate per 1000 Gallons
Block (Gallons per month) Effective Effective
October 1, 2009
1 13,000 $erg $2.88
2 18,000 3 4.31
3 Over 18,000 5.91 6.50
(d) Multiple unit and commercial irrigation: There is hereby established an inclining
block volume charge for all multiunit residential irrigation accounts and all commercial
irrigation accounts as follows:
Upper Limit Rate per 1000 Gallons
Block Effective Effective
(Gallons per month)
November October 1, 2009
1 3,000 $0.60 $1.02
2 Over 3,000 2.22 2.44
(3) Commercial 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.
DIVISION 7. 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 a three - fourths -inch water meter.
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
Effective Effcctivc Effective Effective
October -1, October 1, October 1, October 1,
2007 2008 2009 2010
Residential
Single - family residential and single - family
individually- metered mobile homes, per $15.51 x-7.06 $18.77 $20.46
account
Multifamily residential, per unit 11.64 4 .80 14.08 15.35
Master - metered mobile homes, per site 11.64 12.80 14.08 15.35
Travel trailers, per site 9.32 10.25 11.28 12.30
Hotel/motel, per room 7.77 S:SS 9.41 10.26
Hotel/motel with kitchen, per room 9.32 10.25 11.28 12.30
Commercial
Master - metered commercial, per unit 15.51 174)6 18.77 20.46
Restaurants, laundries, and car wash 15.51 x 17.06 Y 18.77 x ERU 20.46 x ERU
connections Eli €aster master factor factor
All other commercial customers 15.51 Y 17.06 Y 18.77 Y ERU 20.46 x ERU
acter ERU factor factor factor
The ERU factor for the commercial classification is based upon meter size as follows:
Meter Size ERU factor
in inches
5/8 x 3/4 1.00
1 1.28
1 1/2 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.
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
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 individually- metered mobile homes,
per account, as follows:
Upper Limit(Gallons R er1900 Rate-per-1000 Rate per 1000
Block per month) Gallons Effective
November 1, 2008 October 1 01 October 1, 2010
1 3,000 $1.00 $4,48 $1.62
2 13,000 4.73 540 5.67
3 Over 13,000 8700 0:80 0.00
(2) Multiunit residential and all commercial units as follows:
U er Limit Rate -per 1000 Ra r 1te -pe000 Rate per 1000
Block (Gallons per month) Gallons Effective
( h p ) November , , 2004 October 1, 2009 October 1, 2010
1 3,000 $4-.08 $1.18 $1.62
2 Over 3,000 1.73 540 5.67
(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.
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,
2010.
Passed by the City Commission on first reading this _ Day of September,
2010.
AGENDA ITEM # 7A
SEPTEMBER 13, 2010
Mike Borno
Mayor / Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna L. Bartle, CMC
City Clerk