TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: A Resolution of the City Commission of the City of North Port, Florida, Adopting the Annual Utility Rate Schedule for Private Fire Protection Services, the Utility Rate Schedule for Reclaimed Water, the Water System Rate Schedule for Bulk Water, the Utility Rate Schedule for Water and Wastewater Service Deposits; Adopting Automatic Rate Increases; Providing for Incorporation of Recitals; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Resolution No. 2022-R-57.
Background Information
On July 26, 2022, GovRates, Inc. presented the completed 2022 Utility Rate Analysis Report where rates, fees and charges were analyzed to ensure sufficiency in order to cover the costs of providing the services. Utilities Department has seen substantial cost increases for items such as insurance, chemicals, fuel, electricity, supplies and the payment to the Peace River/Manasota Regional Water Supply Authority over the last two years, resulting in the following recommended changes to appropriately recover the costs for providing these specific services.
Ø Private Fire Protection increase to follow the base facility charge of the applicable sized meter
Ø Reuse Rate increase from $.55 per 1,000 gallons to $.68 per 1,000 gallons
Ø West Villages Bulk Reuse Water Rate of $0.21 per 1,000 gallons increase to $0.31 per 1,000 gallons
Ø Inside-City Bulk Water Rate of $5.50 per 1,000 gallons increase by $0.50 per year over the next three years
All other rates in Resolution No. 2019-R-16 not replaced by this Resolution will remain in effect with the previously adopted Consumer Price Index (CPI) provision. This practice of using the CPI helps assure credit rating agencies that the City’s rates will keep up with inflation and hence, have a less implied risk that the City will default on any debt service payments. The CPI clause also helps avoid sudden extreme rate hikes by incrementally adjusting rates during years when rate adjustments are not recommended based on a rate analysis.
The Resolution has been reviewed by the City Attorney for form and correctness.
Strategic Plan
Good Governance
Financial Impact
There will be a negative financial impact if recommended changes are not instituted, such as the inability to complete necessary repair and replacement projects, maintain adequate debt coverage and/or maintain current level of service.
Procurement
N/A
Attachments:
1. Resolution No. 2022-R-57
2. Resolution No. 2019-R-16
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Nancy Gallinaro, Utilities Director