published: Wednesday, April 29, 2009
AP prepares for water, sewer rate increase
By ED BALDRIDGE
ed.baldridge@newssun.com
AVON PARK -- Struggling with deficit spending where the water and sewer rates are concerned, the Avon Park City Council directed staff on Monday to formulate a new way to bill for those services.
Presented with a utility rate study prepared by Sterling L. Carroll, a professional engineer with the Florida Rural Water Association, council was informed that both water and sewer rates would have to increase significantly just to cover the cost of providing those services.
"Your enterprise endeavors should be self sustaining and be able to cover the cost of the assets you have invested there," said Carroll.
"You are going to need a significant rate hike to do that," he added.
Carroll suggested that Avon Park move off the flat rate billing for sewer, matching the billing with the water usage, and to bill water starting at the first 1,000 gallons used, not at 3,000 gallons.
According to Carroll, those using small mounts of water would actually see their bill decrease slightly, but those at the top end of the usage would see an increase to balance the rates out.
"If you are on fixed income and are not using a lot of water, the bill will go down, and you may see an overall decrease in water usage with these newer rates," Carroll said.
The average user in Avon Park stays around the 6,000 gallon mark monthly, and pays about $17.08 for water and a flat rate of $24 for sewer for a total billing of $41.08.
Those outside city limits pay 25 percent more, and commercial rates tend to be about 15 percent, according to Carroll.
Carroll's suggestion was to raise the fees 42.5 percent to $26.41 for water and put sewer on a base rate plus usage depending on the water used.
Average sewer rates would go up to $34.80 per month for a total bill of $61.21, a hike of a little more than $20 per month.
Those who had special exceptions, such as filling a pool, could have the sewer rates capped if they notified the utility department ahead of time, and those with a water leak could ask for some relief as well.
Council directed city staff and Carroll to return with a plan that included at least a 42.5 percent hike as well as a yearly cost-of-living increase.
"We need to go to a graduated rate to make this fair. Currently, those using less water is making up the difference for those using more water," said councilman Joe Wright.
City Finance Director Renee Green asked that Carroll Move quickly because of the budget season.
"I need these new numbers within the next two weeks in order to get moving on this for the budget," Green said.