Subject:
Title
Amend the Utility Services Rate Resolution adjusting connection fees for 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 is $4.8M per year.
The proposed adjustments to the service fees are projected to increase by $15,000 per year.
Dept/Office:
Utility Services Department
Requested Action:
Recommendation
Approval to Amend the Utility Services Rate Resolution encompassing South Beaches, Merritt Island, North Brevard, Port St. John, and the South Central Mainland Service Area, adjusting the fees once from the current fees to the full amount of the recommended connection fees, to be implemented on October 1, 2026.
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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 on October 1, 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 for nutrient removal from treated wastewater, disposal of treated wastewater, unauthorized 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 to a total of $800M.
The Utility Services Department contracted with Raftelis Financial Consultants, Inc., a national rate consultant firm, to analyze and recommend revenue fee adjustments to ensure adequate project and operation funding. The connection fees fund the costs associated with 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 tax dollars to supplement new development.
The Department's current connection fee structure has been in effect since 1993 (see Resolution 93-288).
At the July 7, 2026, Board meeting, the Board approved the advertisement of the rate resolution with changes to the connection fees, service fees, and deposits, an update to the definitions, and an update to the rates approved in 2022 to the current 2026 fees based on the indexing approved in 2022. In addition, at the July 7, 2026, Board meeting, the Board approved proceeding to public hearing with adopting the connection fee rates based on the 1-year implementation option of the beginning of FY 2027.
Clerk to the Board Instructions:
E-mail clerk memo to karina.perez@brevardfl.gov and mail originals to the Utility Services Department