SUBJECT
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Public Hearing to consider the adoption of a Resolution approving proposed revisions to the Utilities Division Schedule of Rates, Charges, and Fees (No fiscal impact).
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DESCRIPTION
In July, 2024, the Board adopted a five-year Utilities Rate Plan adjusting rates to meet the projected capital and operating expenses of the County’s water utility system. At that time it was noted that if inflation persisted above anticipated rates and project costs continued to increase beyond financial projections, the Rate Plan would need to be further adjusted to address those conditions. During a rate study conducted for a proposed 2026 bond series which would fund capital improvements to both new and existing water and wastewater facilities, it was determined that the existing utility rates were insufficient to fund the aggregate costs of utility operating expenses, required debt service payments, and those capital improvement costs which are funded from utility rates and surcharges.
To address the funding shortfall, Utilities staff engaged a rate consultant and recommends the following changes to the County’s current Utilities Rate Plan: (i) extend the present $0.25 per year PWRI/AWS Surcharge increase into each of the years 2029 and 2030; (ii) extend the present six percent (6%) indexing of its potable water rates and wastewater rates into each of the years 2029 and 2030; (iii) increase the base facility charge and usage charges for each reclaimed water service connection, as follows: on October 1, 2026 increase by 1.5 times the existing rate, on April 1, 2027 increase the rate by thirty-three percent (33%), and on October 1st for each of the years 2027 - 2030 (inclusive) increase the rate by six percent (6%); (iv) establish a fee of $0.15 per gallon for septage processing; and (v) on January, 1, 2027, increase the water connection charge by nine hundred fifty-one dollars ($951.00) per Equivalent Residential Connection (“ERC”) and the wastewater connection charges by twelve hundred ninety-one dollars ($1291.00) per ERC. Adopting the attached Resolution will approve all the proposed changes which are described in that document and also included within the revised schedule of the Utilities Division Schedule of Rates, Charges, and Fees attached to the Resolution.
On July 7, 2026, the Board adopted a resolution setting forth a Preliminary Schedule of revised water utility rates, charges, and fees which included the proposed changes. Notice of this Public Hearing, to include the Preliminary Schedule, was made by publication in The Ledger on July 10, 2026.
The proposed rate plan supports the issuance of the Series 2026 Bonds totaling $218.1 million, Series 2028 Bonds totaling $70 million, and Series 2030 Bonds totaling $34.4 million being issued to support necessary capital projects to expand and maintain the utility systems over the five year period. An additional $135 million in bond proceeds may be required after Fiscal Year 2031 to complete projects started at the end of the 5 year rate plan which may necessitate the need for additional rate increase beyond what is proposed.
The rate plan also maintains the necessary financial performance necessary to obtain favorable bond ratings, thus reducing the interest cost of current and future bonds for the next five years.
RECOMMENDATION
Recommend adoption of the attached Resolution revising the Utilities Division Schedule of Rates, Charges, and Fees.
FISCAL IMPACT
No fiscal impact in current fiscal year.
CONTACT INFORMATION
Tamara Richardson
Utilities Division Director
863-298-4246
Charles Richards
Utilities Division Customer Service/Finance Manager
863-298-4135