Exh 7CAGENDA ITEM #7C
SEPTEMBER 12, 2005
STAFF REPORT
City of Atlantic Beach
Commission Meeting
AGENDA ITEM: Utility Rate Increase ORDINANCE NUMBER 80-OS-72
DATE: September 2, 2005
SUBMITTED BY: Nelson Van Liere, Finance Director
BACKGROUND: During the development of the Proposed Operating Budget for the
Fiscal Year ended September 30, 2006, staff estimated that at least
a three percent water and sewer rate increase would be necessary
to fund the ongoing operations of the utility. The three percent
increase will also help ensure that the City meets continued debt
service coverage requirements as required by the City's utility
revenue bond ordinance. Rising costs of operations coupled with
declining water volume sales makes this increase a necessity. This
increase was proposed as part of next year's operating budget and
discussed in the budget workshops. The financial statements
presented to the City Commission for the year ended September
30, 2004 indicated that the utility met bond coverage requirements
by less than a percent and the auditors advised increased revenues
were necessary for the continued financial health of the utility.
This ordinance, if passed, would implement an across the board
increase to be effective immediately.
BUDGET: The budget impact of the proposed three percent increase is
approximately $170,000.
RECOMMENDATION: Approve Ordinance 80-OS-72
ATTACIIMENTS: Ordinance 80-OS-72
REVIEWED BY CITY MANAGER:
AGENDA ITIrNi #t'1C
SEPTIJNIBER 12, 2005
ORDINANCE NO. 80-OS-72
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 year ended
September 30, 2006 includes a three percent increase in the utility rates, and
' WHEREAS, the city has h_ ad 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 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:
AGENDA ITEM #7C
SEPTEMBER 12, 2045
(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:
Residential
Single-family residential and single-family individual-metered mobile homes 565 X6,54 per account
Multifamily residential $4:7~ 54`91 per unit
Master-metered mobile homes S4-.~ 4.91 per site
Travel trailers $4:~ 4.91 per site
Hatellmatel $4~ 4.91 per room
Hotellmotel with kitchen $4-7-~ 4,91 per room
Commercial
Master-metered commercial 56:35 6.54 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
AIi Residential 565 6.54 per account
All Commercial 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) E-/festive
knmediatety Effective
October !, 2005 Effective
October 1, 2006 Effective
October 1, 2007
518 ar'/. $8~ $fI:35 6.54 $§~5 6.54 $6;~ 6.54
1 5~ 534 7.35 554 7.77 $7-94 8.18
1 `/: $8:73 $~1,4-i~ 11.44 $33:49 13.89 $a-5;~ 16.36
2 $~~ X88 , 16.36 5284 . 21.26 525-4A • 26.16
3 53.7:46 $28:8 29.44 $x9:68 40,88 $50:88 -52.32
4 $24:64 $42:@6- 44.15 $63 :1-2 62,95 $79:38 81.76 ,
6 $44-45 $82:55 85.03 $32A:65 124.27 $356:75 163,51
8 $68:26 533tI:38 134.09 $392:99 197.85 $254,89 261.62
(2) Schedule of water volume charges for customers inside the city:
AGENDA ITEM #7C
SEPTENIBER 12, 2005
a. Single ur:its. There are hereby-established inclining block volume charges for
. single-family residential and single-family individual-metered mobile homes, per account
as follows:
Block Upper Limit
(Gallons per Month) Rate per Thousand
Gailons
1 3,000 $0.22
2 8,000 $#~4 X1.79
3 13,000 $x:04 82.10
4 18,000 $x:96 $3.15
5 Over 18,000 $4:&0 $4.74
b. ~Ylultiple units and commercaa! accounts. There are hereby-established an
inclining block volume charge for all multiunit residential and multiunit commercial
accounts as follows:
Upper limit Rate per Thousand
Block Gallons per Month Gallons
(per unit)
1 2,000 $9-2~ $.022
2 Over 2,000 ~ 1.79
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 Month) Rate per Thousand
Gallons
1 13,000 $~:A4 $2.10
2 18,000 $3:063,15
3 Over 18,000 $4.80 $4.74
d. Multiple tai:it and commercial irrigatio~r. There arc 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 Month) Rate per Thousand
Gallons
1 3,000 $9:~ $.022
2 Over 3,000 $4~4 51.79
AGENDA ITEM #7C
SEPTC141BER 12, 2Q0~
(3) Costumers outsirte 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) ~Ylonthly wastetivater 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 unite (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
13.69 per account
Multifamily residential, per unit $8:57 1$ 0.27 per unit
Master-metered mobile homes $5:57 10.27 per site
Travel trailers 8.22 per site
Hotellmotel $I~ X85 per room
Hotellmolel with kitchen $~Sa~ X8.22 per room
Commercial
Master-metered commercial vI3-29 1$ 3.E9 per unit
Restaurants, laundries, and car wash connections $x:25 1$ 3.69 x ERU factor
All other commercial customers $I~9 1$ 3.6g x ERU factor
The ERU factor for the commercial classification is based upon meter size as follows:
Meter Slze (in inches) ERU factor
518 x'/, 1.00
1 1.28
1 %: 2.08
2 2.88
3 5.60
AGENDA ITEM 2005
SEPTEMBER 1..,
4 10.00
6 20.00
8 30.00
(b) Customers outsirie 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) Custurrters 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 Month) Rate per Thousand
Gallons
1 3,000 $0;45
2 13,600 $~8
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 $8:45 X0.46
2 Over 3,000 $3;&9 X3.80
(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 12, 2005
' 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,
2005.
Passed by the City Commission on first reading this Day of September,
2005.
John S. Mesertte
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna Bussey
City Clerk