TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Utilities Rate Analysis Presentation
Recommended Action
No action required.
Commission Options
The Utilities Department and Bryan Mantz, GovRates, Inc. will present a review the Department's current rate structure, budget and recommendations for Fiscal Year 2026. At a future City Commission Meeting, staff will be requesting Commission review and consideration of these recommendations which will be incorporated into Resolution No. 2025-R-66.
Background Information
The Utilities Department budgeted for a comprehensive rate analysis to be conducted during Fiscal Year 2025. As a best management practice, this comprehensive rate analysis was performed by an independent third-party consultant with expertise in utility rate structures. Engaging an outside specialist helps ensure the long-term financial health of our water and wastewater systems; supports fair and equitable billing across all customer classes; and aligns our rate structure with future capital improvement needs and infrastructure planning.
Below is a timeline of events related to the procurement of this project:
> December 16, 2024: The Utilities Department issued RLI 2025-01 under Contract No. 2023-32 for Professional Services related to City Fees, Rates, Methodologies, and Assessments.
> January 20, 2025: Two (2) proposals were received by the solicited due date.
> January 31, 2025: The proposal evaluation and ranking meeting was held where GovRates, Inc. was selected to proceed with the formal rate analysis based on overall ranking.
The analysis reviewed a 10-year outlook encompassing staffing, operational costs, and capital planning. The evaluation considered recent significant cost increases across insurance, chemicals, fuel, electricity, construction, and supplies. The latest Capital Improvement Plan (CIP), developed during the Fiscal Year 2025 budget cycle, incorpora...
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