Summary
To: Town Commission
Through: Gay Lancaster, Town Manager
From: Amy Lockhart Interim Finance Director
Date: 8/5/2024
______________________________________________________________________
Subject:
Title
Water Fund Rate Proposal
Summary:
Staff recommends that the water rates be adjusted in the following ways: the base fee for Residential customers be raised from $20.52 to $24.00, and Commercial customers base fee from $41.05 to $49.26.
Staff also recommends that we add a fourth tier to our Residential usage rate structure to narrow the usage gap and smooth the impact of these rate increases.
Residential Single and Multi-Family
|
1 - 4,000 gallons |
$4.74 |
|
4,001 - 12,000 gallons |
$11.85 |
|
12,001 - 25,000 gallons |
$14.21 |
|
25,000 + gallons |
$15.64 |
Commercial
|
1 - 25,000 gallons |
$12.36 |
|
25,000 + gallons |
14.83 |
Body
Previous Commission Action: Fees were reviewed and approved for FY2024.
Background/Problem Discussion: Currently the Water Fund budget is imbalanced, with a deficit of $861,600.
Beginning in December 2023, the Town began purchasing its water from Pinellas County. The current wholesale rate is $4.52 per 1,000 gallons. In October 2024, this price will increase to $4.74 per 1,000 gallons.
The Finance Board reviewed and recommended approval of the four-tier price structure and proposed rate increases for Residential and Commercial water usage water usage.
Recommendation: Staff recommends approval of the water the proposed water rate structure
Proposed Motion: I move to direct the Town Attorney to draft an ordinance reflecting the proposed water rate structure.