TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: Discussion and Possible Action Regarding Technical Memorandum for Fiscal Year 2025 Water and Wastewater User Rates, a High-Level Revenue Sufficiency Analysis Presented by GovRates, Inc.
Recommended Action
Approval of the Technical Memorandum for Fiscal Year 2025 Water and Wastewater User Rates prepared by GovRates, Inc.
Background Information
In fiscal year 2024, Utilities budgeted for and secured the services of GovRates, Inc. to perform a high-level revenue sufficiency analysis to verify the sufficiency of the rates charged for water and wastewater services for fiscal year 2025. Utilities has seen substantial cost increases for items such as insurance, chemicals, fuel, electricity, and supplies over the last two years, resulting in the recommended overall increase of 9.5%, which is 6.92% above the already adopted automatic increase of the Engineering News Record Construction Cost Index.
If adopted, this adjustment will automatically apply to user rates effective October 1, 2024. For the average residential water and wastewater customer using 3,000 gallons per month, beginning October 1, 2024, the bill will increase from the current $98.69 to $108.07 a month. These changes will help the City absorb the permanent operational increases as well as fund some of the pay as you go capital projects. Utilities will be performing a full rate analysis in fiscal year 2025 to plan for the next several years of capital projects, staffing, and operational needs.
All recommended changes are explained in the Executive Summary of the Rate Analysis along with detailed backup and methodology within the full report.
Strategic Plan
Good Governance
Infrastructure & Facilities Integrity
Environmental Resiliency & Sustainability
Financial Impact
Not applicable.
Procurement
Attachments:
1. North Port Utility Rate Analysis Report
2. Utility Rate Analysis Pr...
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