HomeMy WebLinkAbout2012 09 10 Informational 101 Utility Rate Adjustment
COMMISSION AGENDA
Informational
X
Consent
ITEM101
Public Hearings
Regular
September 10, 2012KLSB
Regular MeetingCity ManagerDepartment
REQUEST:
Finance and Administrative Services and Utilities Departments are informing the
Commission of a Water, Reclaimed Water and Wastewater Consumer Price Index
adjustment.
SYNOPSIS:
Per Ordinance 2009-13, beginning October 2012 Water, Reclaimed and Wastewater rates
are to be adjusted annually using the national pricing index “CPI”. The Utility CPI
adjustment effective October 1, 2012 has been calculated to be 2.3%.
CONSIDERATIONS:
The City Commission authorized a Utility Rate Study in February 2008 to review the water,
wastewater, and reclaimed rates. The focus of the study was to define the rates needed to
operate the Utility system and fund the additional capital needed to construct the reclaimed
augmentation plant and distribution system.
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The recommendations of the study were reviewed at meetings on May 4 and August 10,
2009. Ordinance 2009-13 implements the recommendations discussed at those meetings.
This agenda item is focused on Section 6 of the ordinance and reads as follows:
(6) Price indexing. Beginning annually on October 1, 2012 and
continuing annually thereafter every October 1, the base facility, volume and
service availability charges for water, sewer and reclaimed water shall be
adjusted using the CPI for the previous 12-month period.”
Informational 101 PAGE 1 OF 3 - September 10, 2012
The pending increase in rates are calculated using the broadest measure of CPI available,
percent change in CPI for All Urban Consumers (CPI-U): U.S. city average. The time
period used is, unadjusted 12-months ended Apr. 2012. Due to the timing of the budget
cycle, April's CPI would allow sufficient time to determine the increase in rates and capture
the revenue impact in the new fiscal year planning process. Using the criteria above, the
CPI increase from May 2011 thru April 2012 is 2.3%. The rate adjustment will be applied
to; all base facility fees, potable water, reclaimed and wastewater charges.
The average bill in 2011 for combined Water and Wastewater for a resident in Winter
Springs has been calculated to be $64.95 (9,000 gallons per month). A CPI adjustment of
2.3% would increase the same customer’s monthly bill to $66.44; an increase of $1.49 per
month.
The chart below demonstrates how the City of Winter Springs Water Utility rates compare
to surrounding municipalities.
base facility and consumption rate for potable water, sanitary sewer, and reclaimed
water
FISCAL IMPACT:
A 2.3% CPI rate adjustment will increase the average Winter Springs customer's bill by
approximately $1.49 per month. The aggregate increase in revenue to the utility will be
approximately $160,000.
COMMUNICATION EFFORTS:
Informational 101 PAGE 2 OF 3 - September 10, 2012
This Agenda Item has been electronically forwarded to the Mayor and City Commission,
City Manager, City Attorney/Staff, and is available on the City’s Website, LaserFiche, and
the City’s Server. Additionally, portions of this Agenda Item are typed verbatim on the
respective Meeting Agenda which has also been electronically forwarded to the individuals
noted above, and which is also available on the City’s Website, LaserFiche, and the City’s
Server; has been sent to applicable City Staff, Media/Press Representatives who have
requested Agendas/Agenda Item information, Homeowner’s Associations/Representatives
on file with the City, and all individuals who have requested such information. This
information has also been posted outside City Hall, posted inside City Hall with additional
copies available for the General Public, and posted at five (5) different locations around the
City. Furthermore, this information is also available to any individual requestors. City Staff
is always willing to discuss this Agenda Item or any Agenda Item with any interested
individuals.
RECOMMENDATION:
Staff requests the City Commission receive and review the information provided in this
Agenda Item.
ATTACHMENTS:
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Informational 101 PAGE 3 OF 3 - September 10, 2012