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LTC 301-2022 NOTIFICATION ON WATER AND SEWER UTILITY RATES301-2022 OocuSign Envelope ID: 6A842112-482D-4197-A87F-DA 7CCDF42060 MIAMI BEACH LETTER TO COMMISSION NO. LTC# TO: FROM: Honorable Mayor Dan Gelber and Members of the City Commission Alina T. Hudak, City Mana~ July 25, 2022 [IA ,. I DATE: SUBJECT: NOTIFICATION ON WATER AND SEWER UTILITY RATES The City of Miami Beach has been notified by Miami Dade County Water and Sewer Department (WASD) that there will be an increase by $0.2681 or 7 .72% on the wholesale sanitary sewer and an increase for wholesale water charge by $ 0.0629 or 3.37% to begin October 1, 2022. These adjustments are typically reflected on customer bills as wholesale purchase pass-through charges from WASD as well as Consumer Price Index (CPI) adjustments. At its December 9, 2020 meeting, the City Commission approved Ordinance 2020-4384, a multi- year schedule of monthly water and sewer rates. The total increase (inclusive of CPI increases otherwise permitted under the existing ordinance), is phased in from 2021 through 2025, as follows: 0% in 2021; 1% in 2022; 3.6% in 2023; 3 .6% in 2024; and 3 .7% in 2025 . 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 passthrough 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. Below is an illustration of a cost comparison from fiscal year 2022 and fiscal year 2023 for a single-family residential home with a 3/4" water meter. Sample Residential Water Bill with a 3/4" meter consuming 7,000 gallons per month FY22 FY23 Base Facility Charge $ 8 .59 $ 9 .06 Consumption Charge $ 6 .93 $ 7 .28 WASD Pass-Through $ 14 .59 $ 15 .11 Monthly Charge for Water $ 30 .11 $ 31 .45 Consumption Sample Residential Sanitary Sewer Bill with a 3/4" meter at 7,000 gallons per month FY22 FY23 Base Facility Charqe $ 9.28 $ 9 .50 Consumption Charge $ 32 .76 $ 33 .53 WASD Pass-Through $ 42 .15 $ 45 .61 Monthly Usage Charge for $ 84.19 $ 88 .64 Sanitary Sewer DocuSign Envelope ID: 6A842112-482D-4197-A87F-DA 7CCDF4206D The sample bill in fiscal year 2023 of $120 .09 is marginally higher as compared to fiscal year 2022 which totals $114.29. ~c_:, Cs£ A TH/LS/JLG/PRK/TSH/SKS