| | | | | | | |  | ITEM 1.
PUBLIC HEARING - 9:30 AM |
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| | | | | | | | | DATE: | June 20, 2023
| | DEPARTMENT: | Utilities
| | REQUESTER: | Pamela Keyes
| | TITLE: | Conduct Public Hearing to Adopt Lee County Utilities Rate Schedule |
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| | | | | | | | | I. | MOTION REQUESTED | | | A) Conduct Public Hearing to adopt a resolution approving Lee County Utilities' water, wastewater and reuse rate schedule for a five-year 8% annual increase to be implemented July 1, 2023. Rates will be adjusted each July 1st through 2027. |
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| | | | | | | | | II. | ITEM SUMMARY | | | Conducts a public hearing to adopt by resolution the Lee County Utilities (LCU) revised rate schedule for water, wastewater and reclaimed water services. The Board selected the 2023 LCU rate adjustments on May 2, 2023, and approved to move the item forward for Public Hearing. The rate schedule will be a five-year flat increase of 8% annually and will apply to all water and wastewater monthly service charges (base fees), administrative fees, water rate schedules, wastewater rate schedules, wholesale (bulk) services, and reclaimed water services. |
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| | | | | | | | | III. | BACKGROUND AND IMPLICATIONS OF ACTION |
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| | | | | | | | | | A) | Board Action and Other History | | | | On July 9, 2002, Lee County (BoCC) approved by Resolution 02-07-44, a one-time rate increase to commence on October 1, 2002.
On November 12, 2002, Lee County Board of County Commissioners (BoCC) approved Ordinance 02-32, establishing procedures for adopting future rates, charges, and fees for the Lee County water and sewer system.
On August 14, 2007, Lee County BoCC approved by Resolution 07-08-70, a one-time rate increase of 25% to both water and sewer rates to commence October 1, 2007.
The existing rates for Lee County Utilities (LCU) were adopted by Resolution No. 11-08-26 on August 9, 2011, and effective October 1, 2011. The BoCC approved a four (4) year increase commencing on October 1, 2011, Fiscal Year (FY) 2012, and the last increase started on October 1, 2014 (FY2015). The approved increases were 7%, 7%, 3%, and 3%, respectively. |
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| | | | | | | | | | D) | Analysis | | | | Lee County Utilities staff works with Raftelis Financial Consultants, Inc. annually to complete a Revenue Sufficiency Study to review the enterprise's financial strength and ability to meet bond covenants and provide proposed rate adjustments to cover expenses for the operations, major maintenance, and the Utilities Capital Improvement Program.
The 2023 Lee County Utilities Water and Wastewater Revenue Sufficiency Study (study attached) was presented to the BoCC during the April 4, 2023 Work Session, and presented three rate increase options. The Board moved forward two options to be directed to the Administatrative agenda on May 2, 2023 for Board discussion and selection.
On May 2, 2023, the BoCC approved a five-year flat 8% rate adjustment that will commence on the first day of each billing cycle effective July 1, 2023, and will apply to all water and wastewater base fees, administrative fees, water rate schedules, wastewater, wholesale (bulk), and reclaimed services.
Based on the average residential household usage of 5,000 gallons of water per month, the estimated monthly average bill for water and sewer services will increase as follows:
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Existing
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2023
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2024
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2025
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2026
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2027
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5-Year 8% Flat Increase
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$78.64
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8%
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8%
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8%
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8%
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8%
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Monthly Average Bill Increase
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$6.29
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$6.81
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$7.33
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$7.94
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$8.60
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New Total Average Monthly Bill
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$84.93
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$91.74
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$99.07
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$107.01
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$115.61
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| | | | | | | | | | A) | Current year dollar amount of item:
| No funding required. | | | B) | Is this item approved in the current budget? | N/A | | | C) | Is this a revenue or expense item? | N/A | | | D) | Is this Discretionary or Mandatory? | Discretionary | | | E) | Will this item impact future budgets?
If yes, please include reasons in III(D) above.
| No | | | F) | Fund:
Program:
Project:
Account Strings: | | | G) | Fund Type? | Enterprise | | | H) | Comments:
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| | | | | | | | | VI. | TIMING/IMPLEMENTATION | | | The notice of Public Hearing was advertised on June 9, 2023, ten days before the Public Hearing. |
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| REVIEWERS: | | Department | Reviewer | Action | Date | | Utilities | Keyes, Pamela | Approved | 6/7/2023 - 12:24 PM | | Budget Services | Henkel, Anne | Approved | 6/7/2023 - 1:27 PM | | Budget Services | Winton, Peter | Approved | 6/8/2023 - 9:38 AM | | County Attorney | Jacob, Michael D. | Approved | 6/8/2023 - 1:33 PM | | County Manager | Harner, David | Approved | 6/13/2023 - 10:35 AM |
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