AGENDA ITEM REPORT
TITLE:
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A RESOLUTION WAIVING THE AUTOMATIC ANNUAL INCREASE FOR WATER AND WASTEWATER CHARGES FOR FISCAL YEAR 2021 EFFECTIVE ON APRIL 1, 2021.
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BACKGROUND:
The current water and wastewater rate structure provides for an automatic annual adjustment on the 1st of April each year of the greater of 2.5% or inflation based on the consumer price index (CPI) published by the Bureau of Labor Statistics for the Miami-Fort Lauderdale Metropolitan Area. This resolution will waive the automatic annual rate adjustment for Fiscal Year 2021.
DISCUSSION:
The rate structure was designed to ensure current and future rates are sufficient to cover operating and capital costs. After review, the Water and Wastewater Fund remains financially stable and able to meet current obligations, mainly due to previous rate adjustments, coupled with savings in operating and capital costs. The Finance and Administrative Services Department is recommending that the City Commission waive the annual rate increase for Fiscal Year 2021. Ongoing monitoring of the Fund will ensure future financial stability.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: ($300,000)
EXPENDITURES: N/A
BUDGETED: No
NOTES: Water and Wastewater Fund - Water Sales Account 41-V34331 ($179,000) and Sewer Sales Account 41-V34351 ($121,000).