AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AMENDING CHAPTER 20 OF THE CODE OF ORDINANCES, “UTILITIES,” ARTICLE V, “RATES AND CHARGES,” BY AMENDING SECTION 20-82, “SCHEDULE OF RATES, FEES AND CHARGES,” SUBSECTION 20-82(8), “OUTSIDE CITY CUSTOMERS,” TO REDUCE THE SURCHARGE FOR WATER AND WASTEWATER SERVICES PROVIDED TO OUTSIDE CITY CUSTOMERS FROM TWENTY-FIVE PERCENT (25%) TO FIFTEEN PERCENT (15%). (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the December 13, 2018, City Commission Meeting.
Currently, utility customers who receive services from the City’s Water/Wastewater Utility System and whose property is located outside the corporate limits of the City are charged a twenty-five percent (25%) surcharge as provided by Section 180.191, Florida Statute. The City collects approximately $543,700 in surcharge revenues annually.
DISCUSSION:
The City’s tiered rate structure encourages conservation by charging more for higher levels of consumption. The rate structure combined with the additional surcharge significantly and disproportionately impacts residential customers of Parkland and unincorporated Broward County. Reducing the surcharge from twenty-five percent (25%) to fifteen percent (15%) will have minimal impact on revenues, yet provide some relief to larger residential customers who live outside the City limits.
RECOMMENDATION:
Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: ($ 217,500.00)
EXPENDITURES: N/A
BUDGETED? No
NOTES: Water and Wastewater Fund - Water Sales Account 41-V34331 and Sewer Sales Account 41-V34351.