Subject:
Title
Permission to Advertise, RE: Public Hearing to amend the Utility Services Rate Resolution encompassing South Beaches, Merritt Island, North Brevard, Port St. John, and the South Central Mainland Service Area.
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Fiscal Impact:
The estimated maximum fiscal impact of the adjustments made to the water and sewer connection fees are $4.8M per year.
The proposed adjustments to the service fees are projected to increase $15,000 per year.
Dept/Office:
Utility Services Department
Requested Action:
Recommendation
In accordance with Section 258-33(c) staff requests that the Board of County Commissioners grant permission to staff to advertise a Public Hearing at which the board will consider amendments to the Utility Service Rates Resolution and its Exhibits. In addition, staff is seeking direction relating to the implementation of the rates.
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Summary Explanation and Background:
Section 258-33(c) stipulated stipulates that, “No rates, fees or charges shall be fixed under the foregoing provisions of this section until after a public hearing at which all the users of the proposed water system or sewer system or combined water and sewer system, or owners, tenants, or occupants served or to be served thereby and all others interested shall have an opportunity to be heard concerning the proposed rates, fees and charges.” Furthermore, the section provides that the notice of the public hearing proposing to amend the rates, fees, and charges shall be given at least 20 days before the hearing. The public hearing will be scheduled for a future Board meeting. If the rate resolutions are approved, the revised rates will be implemented by October 2026.
Recent legislation involving both the State (Florida Department of Environmental Protection - FS Chapter 403) and Federal laws (Environmental Protection Agency - Title 40 of U.S. Code of Federal Regulations) establishes new standards with nutrient removal from treated wastewater, disposal of treated wastewater, unsolicited wastewater discharges, and removal of PFAS from treated potable water. For the County to comply with the new standards, the Utility Services Department must expand the 10-year Capital Improvement Projects totaling $800M. The Department's current fee structure is significantly deficient in providing the revenues necessary to comply with the aforementioned standards. The fees currently in use today ($1,903 per Equivalent Residential Unit [ERU] - water, $2,257 per ERU for wastewater) have been in effect since 1993 (see Resolution 93-288).
The Utility Services Department contracted with Raftelis Financial Consultants, Inc., a national rate consultant firm, to analyze and recommend revenue fee structure adjustments to ensure adequate project and operation funding. The connection fees fund the costs associated expanded plant capacity to accommodate growth associated with development. Although, for all intents and purposes, connection fees are very similar to impact fees, pursuant to FS 163.31801(12) they do not have the same limits of implementing impact fees. The Water and Wastewater Connection Fee Study recommendations propose the following increases: (1) water connection fee from $1,903 to $8,500 and (2) wastewater connection fee from $2,257 to $4,500. It should be noted that the Utility Services Department functions as a 100% enterprise fund and past Boards have not advocated for ad valorem taxes dollars to supplement new development.
The table below (Exhibit C) provides potential implementation options for the Board’s consideration.
OPTIONS
1. Adjust fee once from current fee to full amount of recommended fee.
2. Spread increase over two years to achieve recommended amount.
3. Spread increase over three years to achieve recommended amount.
4. Spread increase over five years to achieve recommended amount.
5. Another direction provided by the Board.
Clerk to the Board Instructions:
E-mail clerk memo to karina.perez@brevardfl.gov and mail originals to the Utility Services Department