Item 7C v~.
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Utility Rate Increase ORDINANCE NUMBER 80-06-73
DATE: September Ol, 2006
SUBMITTED BY: Nelson Van Liere, Finance Director
AGENDA ITEM # 7C
SEPTEMBER I I, 2006
BACKGROUND: During the development of the proposed operating budget for the
fiscal year ended September 30, 2007, staff estimated that at least a
~" three percent water and sewer rate increase would be necessary to
fund the ongoing operations of the utility. This ordinance
increases the water and sewer rates by three percent.
Rising costs of operations coupled with the declining water volume
sales makes this increase a necessity. The financial statements
~" presented to the City Commission for the year ended September
30, 2005 indicated that the utility met bond coverage requirements,
but only by a small margin. The FY2007 proposed budget
indicates that the current year estimate for the change in fund
balance of the utilities combined is a reduction of $454,808.
BUDGET: The budget impact of the proposed three percent increase is
approximately $173,493. This amount is included in the FY2007
Proposed Operating Budget.
RECOMMENDATION: Approve Ordinance 80-06-73
ATTACHMENTS: Ordinance 80-06-73
REVIEWED BY CITY MANAGER:
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AGENDA ITEM # 7C
SEPTEMBER 11, 2006
ORDINANCE NO. 80-06-73
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, IRREGATION
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 proposed water and sewer budget for fiscal yeaz ended
September 30, 2007 includes a three percent increase in the utility rates, 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:
Article II, Waterworks System:
Sec. 22-27. Charges for water service.
The reasonable rates, rentals, fees and other chazges 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:
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AGENDA ITEM # 7C
SEPTEMBER 11, 2006
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(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
j following:
Residential
Single-family residential and single-family individual-metered mobile homes $~4 .74 per account
Multifamily residential 54~ 5.06 per unit
Master-metered mobile homes ~4:a1- 5.06 per site
Travel trailers $4:94 5.06 per site
HoteUmotel $4-9~ 5.06 per room
Hotel/motel with kitchen $4:94 5.06 per room
Commercial
Master-metered commercia! $~54 6.74 per unit
Restaurants, laundries, and car wash connections Based on meter size phase in table below
All other commercial customers Based on meter size phase in table below
Irrigation
All Residential $6:54 6.74 per account
All Commeraal Based on meter size 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) i €ttsstli~e
8sl+ebeF-1~,-2AA5 Effective
October 1, 2006 Etitective
October 1, 2007
518 or'/. $6:54 $6:54- 6.74 56:54- 6.74
1 57-.35 $~~ 8.00 $8-35- 8.43
1 %: $4.3:44 $33:@9- 14.31 $46:x6- 16.85
2 $16:36 e'er 21.90 5 26.94
3 529;44 54A:~- 2.11 5~~ 53.89
4 544-35 562-8a- X64.84 5r~3:~ $8 .21
6 $6<5:93 5424:2- 128.00 546351- 168.42
8 5434:89 5387-85- 203.79 $264:62- 269.47
(2) Schedule of water volume charges for customers inside the city:
AGENDA ITEM # 7C
SEPTEMBER 11, 2006
i a. Single units. There are hereby-established inclining block volume charges for
~" single-family residential and single-family individual-metered mobile homes, per account
I as follows:
Block Upper Limit
(Gallons per Month) Rate per Thousand
Gallons
1 3,000 $~ 0.23
2 8,000 $.1-.fig 1.84
3 13,000 $2-18 2.16
4 18,000 $3-18 3.24
5 Over 18,000 $4~4 4.88
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:
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c. Single unit irrigation. There are hereby-established an inclining block irrigation
volume charge for all single-family residential and single-family individual-metered
j mobile homes, per account as follows:
Block Upper Limit
Gallons per Monfh Rate per Thousand
(per unit) Gallons
1 2,000 $:92~ 0.23
2 Over 2,000 $~9 1.84
Block Upper Limit
(Gallons per Month) Rate per Thousand
Gallons
1 13,000 $2-18 2.16
2 18,000 $~ 3.24
3 Over 18,000 $4:~4 4.88
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 Monfh) Rate per Thousand
Gallons
1 3,000 $:A22 0.23
2 Over 3,000 $4-T8 1.84
AGENDA ITEM # 7C
SEPTEMBER 11, 2006
(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 chazges.
ARTICLE III WASTEWATER SYSTEM
Division Seven, Sewer user rates and charges,
Sec. 22-lbb. 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.
Residential
Single-family residential and single-family
ndividual-metered mobile homes, per account
~~ 14.10 per account
Multifamily residential, per unit S~7 10.58 per unit
Master-metered mobile homes $t8:27 10.58 per site
Travel trailers $~ 8.47 per site
HoteUmotel S~ 7.06 i~ room
Hotel/motel with kitchen S» .47 per room
Commercial
Master-metered commercial i~69 14.10 per unit
Restaurants, laundries, and car wash connections g13:6i3 14.10 x ERU factor
AH other commeraal customers 313 14.10 X ERU factor
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
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AGENDA ITEM # 7C
SEPTEMBER 11, 2006
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:
81ock Upper Limit
(Gallons per Monfh) Rate per Thousand
Gallons
1 3,000 ~ 0.47
2 13,000 $3:@9 3.91
3 Over 13,000 $0.00
(2) Multiunit residential and all commercial units as follows:
Block Upper Limit
(Gallons per Month, per Rate per Thousand
Unit) Gallons
1 3,000 ~ 0.47
2 Over 3,000 $~8 3.91
(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.
AGENDA ITEM # 7C
SEPTEMBER I I, 2006
SECTION 3. Effective Date
This Ordinance shall take effect upon its fmal passage and adoption.
Passed by the City Commission on first reading this day of September,
2006.
Passed by the City Commission on second and fmal reading this day of
September, 2006.
Donald M. Wolfson
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna Bussey
City Clerk