AGENDA ITEM REPORT
TITLE:
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A RESOLUTION WAIVING 7.4 PERCENT OF THE 9.9 PERCENT AUTOMATIC ANNUAL RATE INCREASE FOR WATER AND WASTEWATER CHARGES FOR FISCAL YEAR 2023 EFFECTIVE ON APRIL 1, 2023.
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BACKGROUND:
The current water and wastewater rate structure provides for an automatic annual adjustment on April 1st of each year for the greater of 2.5 percent or the Consumer Price Index (CPI) published by the Bureau of Labor Statistics for the Miami-Fort Lauderdale Metropolitan Area, which is 9.9 percent this year. This resolution will waive 7.4 percent of the automatic annual rate adjustment of 9.9 percent for Fiscal Year 2023, resulting in an annual increase of 2.5 percent, effective April 1, 2023.
DISCUSSION:
The rate structure in Section 20-82(9) of the City’s Code of Ordinances was designed to ensure that current and future rates are sufficient to cover operating and capital costs for water and wastewater. Currently, the greater number of 2.5 percent or CPI is CPI, which is 9.9 percent. However, after considering the current economic environment, increases in operating costs, and the overall financial position of the Water and Wastewater Fund, the City Manager recommends waiving 7.4 percent of the scheduled 9.9 percent rate increase, resulting in an increase of 2.5 percent effective April 1, 2023. The last rate increase was in Fiscal Year 2017.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: $312,000 based on a 2.5 percent rate increase
EXPENDITURES: N/A
BUDGETED: Yes
NOTES: Water and Wastewater Fund - Water Sales Account 41-V34331: $186,000, and Sewer Sales Account 41-V34351: $126,000.