LTC 477-2019 NOTIFICATION ON WATER AND SEWER UTILITY RATES INAIAMIBEACH
City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
Jimmy L. Morales, City Manager
Tel:305-673-7010,Fax:305-673-7782
477-2019
NO. LTC# TIER TO COMMISSION
TO: Mayor Dan Gelber and Members of e City Corn ission
FROM: Jimmy L. Morales, City Manager
DATE: August 28, 2019
SUBJECT: NOTIFICATION ON WATER AND SE ER UTILITY RATES
The City of Miami Beach was recently notified by WASD that there will be an increase by 0.1017 or 3.29% on the
wholesale sanitary sewer and a decrease for wholesale water charge by$0.0724 or-4.11%to begin October 1,
2019. The adjustments will be reflected in wholesale purchase pass-through charges from WASD for fiscal year
2019/2020.
The Water and Sanitary Sewer user rate components include a base facility charge, consumption charge, and
wholesale purchase pass-through charges from Miami-Dade County Water and Sewer Department(WASD). The
base facility charge serves as the monthly minimum service charge on each service, varying with the size of the meter
installed. The consumption charge is calculated on metered water consumption. The wholesale purchase pass-
through charges are designed to recover the cost of purchased potable water to the City and the sanitary sewer
treatment and disposal services as provided by WASD.
On September 27, 2016, City Commission approved Miami-Dade Water and Sewer Department(WASD)
pass-through costs and automatic rate increases according to the Consumer Price Index(CPI)as identified in
Ordinance 2016-4039. The base facility charge and the consumption charge will be increased for both water and
sanitary sewer beginning October 1, 2019 in accordance with the Consumer Price Index (CPI) for the Miami-
Fort Lauderdale-West Palm Beach as published by the Bureau of Labor Statistics effective for the month of April
2019 as compared with April of 2018. The CPI increased 2.2%for April 2019.
Operations and maintenance costs have remained within budget for 2018-2019, and revenues are expected to
be sufficient for budgeted fiscal year 2019/2020. The existing water and sanitary sewer rate structure was
designed to support the cost of the 2017 Water and Sewer bond issuance which was issued in December 2017.
Therefore, it is not anticipated that the charges will need to be increased to fund the projected debt service.
Below is an illustration of a cost comparison from fiscal year 2019 and fiscal year 2020 for
a single-family residential home with a 3/4"water meter.
Egli" /TSH/SKS
Sample Residential Water Bill with a 3/4"water meter consuming 7,000 gallons per
month
FY 19 FY 20
*Base Facility Charge $ 8.32 $ 8.50
*Consumption Charge 6.70 6.85
WASD Pass-Through 13.75 13.15
Monthly Charge for
Water Consumption $ 28.77 $ 28.50
Sample Residential SanitarySewer Bill with a 3/4"water meter consuming 7,000
gallons per month
FY 19 FY 20
*Base Facility Charge $ 8.99 $ 9.19
*Consumption Charge 31.73 32.43
WASD Pass-Through 37.26 38.56
Monthly Usage
Charge for Sanitary
Sewer $ 77.98 $ 80.18
The sample bill in fiscal year 2019 of$106.75 is approximately the same as compared to fiscal year 2020
which totals $108.68.
•
ETC/RWC/TSH/SKS