HomeMy WebLinkAboutC7P Water Sewer Stormwater Rate Study COMMISSION Presentation 042226Water, Sewer, and
Stormwater Rate Study
John C. Norris
Director –Public Works GovRates
Utility, Financial, Rate, and Management
Consultants for Governments
www.govrates.com
Why We Are Here
2
•Water Quality •Aging Infrastructure•What Makes our City a Destination Also Makes our
Infrastructure Challenging to Maintain•City Commission – Replacing Infrastructure is a
Top Priority
Why We Are Here
3
▪The Water/Sewer and Stormwater Utility Funds
are Enterprise Funds and are Independent of
General Fund and Resort Tax Revenues
▪City’s Last Formal Water and Sewer Rate Study
Was Completed at End of 2020
▪City’s Last Formal Stormwater Rate Analysis Was
Completed as Part of a 2017 Bond Issuance
▪Need Multi-Year Rate and Financial Plans That
Reflect Current Conditions and Address
Substantially Higher Utility Infrastructure Needs
and Costs
4
•Water, Sewer, and Stormwater Improvements Should Be
Performed at the Same Time•About $62 Million (56% of Water and Sewer Revenues) of
Water and Sewer Operating Expenses Are Mostly
Uncontrollable Treatment and Regulation Costs from Miami-
Dade County
City Utility Infrastructure
Funding Challenges
5
•Most Grants Awarded to City Require a 50% Match, and the
Projects Must Be Completed Within a Certain Amount of
Time•Many Projects Are "Shovel Ready" and Can Be Completed
Within the Next Few Years If the Utilities Have Adequate
Funding•We Must Charge Enough in User Fees to Maintain our
Infrastructure
City Utility Infrastructure
Funding Challenges (cont.)
6
▪Multi-Year Capital Programs for Water, Sewer, and
Stormwater Utility Systems Were Developed Based on:•Criticality of Need (e.g., Consent Order)•Grant Funding Timeframes•Utility Master Plans Approved By City Commission•City Commission Direction on Which Projects to Complete•Consideration of How Much Could Be Physically Accomplished
During a Given Time Period•Ability to Finance Improvements While Maintaining Financial
Metrics Suitable for "AA" Utility Bond Ratings to Minimize Interest
and Issuance Costs•Rate Affordability
Public Health and Safety Issue:
Reinvestment in Utility Systems
7
Capital Improvement Plan FY27 - FY34
Water & Sewer Projects for 2024-2034 Rate Increase
Project Type Capital Project No. Component MP Project
No.
PWD Project
No. Capital Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 27-FY 34
Other 20527 FDOT ALTON RD. UTILITIES
RELOCATION WW S-04/W-46 FDOT Gravity Main Replacement - Priority 1 - 41 TO
48TH(*W and WW)$8,000,000.00 $8,000,000.00
Other 20527 FDOT ALTON RD. UTILITIES
RELOCATION WW S-04/W-45 FDOT Gravity Main Replacement - Priority 1 - Alton Rd
from Lake View to 63rd Street (*W and WW)$23,000,000.00 $23,000,000.00
NIP 20525 WEST AVENUE PH III W/WW NIP 10-001 West Ave Ph 3 $7,600,000.00 $7,600,000.00
NIP 24120 NORTH SHORE D - TOWN
CENTER - Ph 1A W/WW NIP 10-015 North Shore D, Phase 1A $45,000,000.00 $45,000,000.00
NIP 24120 NORTH SHORE D, Ph 1B &
2 W/WW NIP 10-015 North Shore D, Phase 1B & Phase 2 $1,343,462.70 $19,500,000.00 $20,843,462.70
NIP 20587 1ST ST - ALTON RD TO
WASHINGTON PH 1&2 W/WW NIP 10-002 1st Street, Ph 1+2 $27,500,000.00 $27,500,000.00
NIP 24229 1ST ST - ALTON TO
WASHINGTON PH 3&4 W/WW NIP 10-002 1st Street, Ph 3+4 $239,240.00 $29,030,000.00 $29,269,240.00
NIP 20922 NORMANDY ISLES A W/WW NIP Normandy Isles, Ph 1 $5,646,644.00 $50,819,792.00 $56,466,436.00
NIP 20922 NORMANDY ISLES A W/WW NIP Normandy Isles, Ph 2 $5,646,644.00 $5,646,644.00
NIP 20422 FLAMINGO LUMMUS
PHASE 1 W/WW NIP Flamingo Lummus Ph 1 $ 4,842,916.60 $4,842,916.60
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 31-005 CN# 1 Nautilus F (North)$928,000.00 $928,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 34-017 CN# 2 Nautilus B - Muss Park $1,000,000.00 $1,000,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 34-021 CN# 3 La Gorce C - N Bay Rd Drainage $972,000.00 $972,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 34-020 CN# 4 La Gorce A $684,000.00 $684,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 5 La Gorce C - N Bay Rd 2 $104,000.00 $936,000.00 $1,040,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 6 City Center A - Palm View $124,000.00 $1,116,000.00 $1,240,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 7 Flamingo/Lummus E - Lenox Ave $36,000.00 $324,000.00 $360,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 8 Nautilus F - Nautilus Dr $20,000.00 $180,000.00 $200,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 9 N Shore B & C - Dickens Ave $74,000.00 $666,000.00 $740,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 10 Flamingo/Lummus A - 6th St $52,000.00 $468,000.00 $520,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 11 North Shore A - Byron Ave $172,000.00 $1,548,000.00 $1,720,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 12 Nautilus D - N Bay Rd $102,000.00 $918,000.00 $1,020,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 13 Flamingo/Lummus C - Lenox Ave $92,000.00 $828,000.00 $920,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 14 Nautilus A - Royal Palm Ave $72,000.00 $648,000.00 $720,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 15 Lakeview A (North)$100,000.00 $900,000.00 $1,000,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 16 Nautilus G - N Bay Rd $106,000.00 $954,000.00 $1,060,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 17 Bayshore B $134,000.00 $134,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 18 Normandy Shores A - Shore Lane $38,000.00 $38,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 19 Lower North Bay Rd A $60,000.00 $60,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 20 La Gorce Island A $226,000.00 $226,000.00
Critical Needs 28220 Wastewater Manhole
Rehabilitation WW NA 41-006 Manhole inspection and rehabilitation $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $36,000,000.00
Critical Needs NEW Gravity Mains I/I
(Trenchless)WW NA Gravity Mains I/I (Trenchless)$4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $4,500,000.00 $36,000,000.00
Critical Needs 20526 North Bay Road and
Lakeview - La Gorce Gravity WW S-04 41-008 Priority 1 - N. Bay Rd from Lake View Dr to 63rd
Street (La Gorce Gravity Main Replacement)$29,800,000.00 $29,800,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW S-09 42-011 PS 2 FM Replacement (10-in to 16-in) Star Island
(2022)$15,000,000.00 $15,000,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW S-31/S-45 42-006 Priority 1 - Dade Boulevard Subaqueous
Crossings $6,574,015.00 $6,574,015.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW S-31/S-45 42-006 Priority 1 - Indian Creek Subaqueous Crossings $5,000,000.00 $5,000,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW S-31 42-017 Priority 1 - PS 29 Discharge Parallel FMs to
AECOM crossing (PS 29 discharge FM)$6,820,000.00 $6,820,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW Non Funded 42-021 New - PS 9 Force Main for Mount Sinai $8,730,000.00 $8,730,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW S-31 42-002 Priority 1 - Terminal Isle Phase I (lining FY2026)
and Phase II (open cut)$2,420,250.00 $2,420,250.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab WW S-13 and S-15 42-012 Sewer Pump Station No. 18 and 27 Force Main
replacement - La Gorce (2022)$3,600,000.00 $3,600,000.00
Critical Needs 28320 Odor Control WW N/A 43-003 Odor Control System $ 700,000.00 $ 700,000.00 $ 700,000.00 $ 700,000.00 $ 700,000.00 $ 700,000.00 $ 700,000.00 $ 700,000.00 $5,600,000.00
Critical Needs 20619 Sewer Pump Stations WW PS S-29 43-007 PS No. 29 R&R (2026)$25,000,000.00 $25,000,000.00
Critical Needs 20619 Sewer Pump Stations WW PS S-25 PS 15 R&R (2027)$3,044,275.53 $3,044,275.53
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-27/W-45 51-004 P-3 Fire Flow Project 14 includes WM PoF/Cof
(WM Along Collins From 65 to 72) (2024)$2,700,000.00 $2,700,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-45 52-015 Priority 1 - Water Main on Normandy Isle - 5300
LF 36" from Meter to Booster - NON CCNA $13,000,000.00 $13,000,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-45/W-22 52-002 Priority 1 - Water Main Along 41st Street - CIP
combined with W-22 $17,253,652.00 $17,253,652.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-12 52-016 Capacity - Project 1 - MacArthur Causeway - 9200
LF of 30" (upsize 20 to 36) (2022)$26,000,000.00 $26,000,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-13 Capacity - Project 2 - Julia Tuttle Causeway/41st
Street (2028)$3,500,000.00 $35,000,000.00 $38,500,000.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-22/W-45 52-002 Fire Flow Project 9 - Hospital / Combined with
WM replacement along 41st Street corridor $5,188,117.00 $5,188,117.00
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-41 Aerial crossing along Alton Road between Chase
Ave & W 34th St Rehabilitation (2026)$219,689.99 $219,689.99
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-44 Aerial crossing along Alton Rd between W 48th St
& Lakeview Dr Rehabilitation (2026)$627,685.68 $627,685.68
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-42 Aerial crossing along Biarritz Drive between S
Shore Dr & Calais Dr Rehabilitation (2026)$219,689.99 $219,689.99
Critical Needs 28520 Water and Wastewater
Mains and Rehab W W-43
Aerial crossing along Wayne Avenue Pedestrian
Bridge between Wayne Ave & Tatum Waterway
Rehabilitation (2026)
$156,921.42 $156,921.42
Critical Needs 28120 Water Booster Stations W PS W-04 53-005 41St Street BPS Hardening (2027)$6,500,000.00 $6,500,000.00
Critical Needs 28120 Water Booster Stations W PS W-05 53-002 Belle Isle BPS Rehabilitation (2020)$4,950,000.00 $4,950,000.00
Critical Needs 28120 Water Booster Stations W PS W-06 53-003 Terminal Island BPS Hardening and PS 30 Dual
Generator (2026)$1,500,000.00 $1,500,000.00
Critical Needs 28120 Water Booster Stations W PS W-03 53-006 Normandy Isle BPS Hardening (2026)$2,326,000.00 $2,326,000.00
Other Public Works Operations
Facility W/WW PW Ops Facility $ 2,691,000.00 $2,691,000.00
Other Collins Park Ancillary
Improvements (CIP)W/WW Collins Park Ancillary Improvements (CIP) $ 946,089.35 $946,089.35
$63,152,089.35 $114,619,894.00 $48,491,255.00 $105,798,838.36 $65,694,403.41 $23,388,919.53 $111,289,769.00 $16,682,916.60 $549,118,085.24
Stormwater Projects for 2024-2034 Rate Increase
Project Type Capital Project No. Component MP Project
No.
PWD Project
No. Capital Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 27-FY 34
NIP 20525 WEST AVENUE PH III W/WW NIP 10-001 West Ave Ph 3 $0.00
NIP 24120 NORTH SHORE D - TOWN
CENTER - Ph 1A W/WW NIP 10-015 North Shore D, Phase 1A $45,000,000.00 $45,000,000.00 $90,000,000.00
NIP 20587 1ST ST - ALTON RD TO
WASHINGTON PH 1&2 W/WW NIP 10-015 North Shore D, Phase 1B & Phase 2 $4,551,393.60 $39,000,000.00 $43,551,393.60
NIP 24120 NORTH SHORE D, Ph 1B &
2 W/WW NIP 10-002 1st Street, Ph 1+2 $25,400,000.00 $25,400,000.00
NIP 24229 1ST ST - ALTON TO
WASHINGTON PH 3&4 W/WW NIP 10-002 1st Street, Ph 3+4 $299,050.00 $34,670,000.00 $34,969,050.00
NIP 20922 NORMANDY ISLES A W/WW NIP Normandy Isles, Ph 1 $7,058,304.00 $63,524,740.00 $70,583,044.00
NIP 20422 FLAMINGO LUMMUS
PHASE 1 W/WW NIP Normandy Isles, Ph 2 $7,058,304.00 $7,058,304.00
NIP 20922 NORMANDY ISLES A W/WW NIP Flamingo Lummus Ph 1 $ 6,053,646.00 $6,053,646.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 31-005 CN# 1 Nautilus F (North)$3,712,000.00 $3,712,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 34-017 CN# 2 Nautilus B - Muss Park $4,000,000.00 $4,000,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 34-021 CN# 3 La Gorce C - N Bay Rd 1 $3,888,000.00 $3,888,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN 34-020 CN# 4 La Gorce A $2,736,000.00 $2,736,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 5 La Gorce C - N Bay Rd 2 $416,000.00 $3,744,000.00 $4,160,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 6 City Center A - Palm View $496,000.00 $4,464,000.00 $4,960,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 7 Flamingo/Lummus E - Lenox Ave $144,000.00 $1,296,000.00 $1,440,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 8 Nautilus F - Nautilus Dr $80,000.00 $720,000.00 $800,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 9 N Shore B & C - Dickens Ave $296,000.00 $2,664,000.00 $2,960,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 10 Flamingo/Lummus A - 6th St $208,000.00 $1,872,000.00 $2,080,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 11 North Shore A - Byron Ave $688,000.00 $6,192,000.00 $6,880,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 12 Nautilus D - N Bay Rd $408,000.00 $3,672,000.00 $4,080,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 13 Flamingo/Lummus C - Lenox Ave $368,000.00 $3,312,000.00 $3,680,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 14 Nautilus A - Royal Palm Ave $288,000.00 $2,592,000.00 $2,880,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 15 Lakeview A (North)$400,000.00 $3,600,000.00 $4,000,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 16 Nautilus G - N Bay Rd $424,000.00 $3,816,000.00 $4,240,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 17 Bayshore B $536,000.00 $536,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 18 Normandy Shores A - Shore Lane $152,000.00 $152,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 19 Lower North Bay Rd A $240,000.00 $240,000.00
Critical Needs 21424 Stormwater Critical
Needs W/WW CN CN# 20 La Gorce Island A $904,000.00 $904,000.00
Other PUBLIC WORKS OPERATIONS
FACILITY W/WW Public Works Operations Facility $2,070,000.00 $2,070,000.00
Other FDOT ALTON ROAD UTILITIES
RELOCATION W/WW FDOT Alton Road Utilities Relocation $11,200,000.00 $14,300,000.00 $25,500,000.00
Other NUISANCE FLOODING
MITIGATION W/WW Nuisance Flooding Mitigation $200,000.00 $200,000.00 $200,000.00 $200,000.00 $200,000.00 $200,000.00 $200,000.00 $200,000.00 $1,600,000.00
Other STORM SYSTEM REHAB W/WW Storm System Rehab $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $16,000,000.00
Other CITYWIDE SEAWALL REHAB W/WW Citywide Seawall Rehab $11,462,070.29 $16,663,860.61 $16,375,094.41 $4,916,729.33 $6,760,442.26 $5,685,767.04 $12,884,389.74 $4,954,176.72 $79,702,530.42
Other Collins Park Ancillary
Improvements (CIP)W/WW Collins Park Ancillary Improvements (CIP) $ 1,097,300.00 $1,097,300.00
$23,383,370.29 $105,240,164.61 $72,586,144.41 $60,650,122.93 $77,677,182.26 $25,632,071.04 $74,976,389.74 $21,767,822.72 $461,913,268.02
8
▪Water and Sewer Capital Improvement Program
Public Health and Safety Issue:
Reinvestment in Utility Systems (cont.)
Amount
Description Project Type ($ M)
WATER AND WASTEWATER MAINS AND REHAB Critical Needs 206.3$
NORMANDY ISLES A Neighborhoods 62.1
SEWER PUMP STATIONS Critical Needs 59.8
FDOT ALTON RD. UTILITIES RELOCATION Other 48.2
NORTH SHORE D - TOWN CENTER - PH 1A Neighborhoods 45.0
WASTEWATER MANHOLE REHABILITATION Critical Needs 38.9
GRAVITY MAINS I/I (TRENCHLESS)Critical Needs 36.0
NORTH BAY ROAD AND LAKEVIEW - LA GORCE GRAVITY MAIN Critical Needs 32.2
1ST ST - ALTON TO WASHINGTON PH 3&4 Neighborhoods 29.3
WATER BOOSTER STATIONS Critical Needs 22.5
1ST ST - ALTON RD TO WASHINGTON PH 1&2 Neighborhoods 21.0
NORTH SHORE D, PH 1B & 2 Neighborhoods 20.8
STORMWATER CRITICAL NEEDS - ANCILLARY WATER AND SEWER LINE ADJUSTMENTS Critical Needs 14.8
OTHER Various 27.8
TOTAL WATER AND SEWER MAJOR CAPITAL NEEDS 664.7$
Major Water and Sewer Capital Needs Through the Fiscal Year 2034
9
▪Stormwater Capital Improvement Program
Public Health and Safety Issue:
Reinvestment in Utility Systems (cont.)
Amount
Description Project Type ($ M)
NORTH SHORE D - TOWN CENTER - PH 1A Neighborhoods 90.0$
CITYWIDE SEAWALL REHAB Other 85.6
NORMANDY ISLES A Neighborhoods 77.6
STORMWATER CRITICAL NEEDS Critical Needs 59.5
NORTH SHORE D, PH 1B & 2 Neighborhoods 43.6
1ST ST - ALTON TO WASHINGTON PH 3&4 Neighborhoods 35.0
1ST ST - ALTON RD TO WASHINGTON PH 1&2 Neighborhoods 26.9
FDOT ALTON ROAD UTILITIES RELOCATION Other 25.5
WEST AVENUE PH III Neighborhoods 19.8
STORM SYSTEM REHAB Other 16.0
OTHER Various 15.6
TOTAL STORMWATER MAJOR CAPITAL NEEDS 495.0$
Major Stormwater Capital Needs Through the Fiscal Year 2034
10
▪Have Assumed Need for Multiple Bond Issues Through Fiscal
Year 2034 for About $400M of Water-Sewer Projects and
$235M of Stormwater Projects
▪A Higher Bond Rating Translates to Lower Interest Rates,
Lower Issuance Costs, and Lower Rates Over the Long-Term
▪$85M Water and Sewer Bond Issue Authorized By City
Commission in 2024 Has Not Yet Been Issued Since a Multi-
Year Rate and Financial Plan Has Not Been Adopted
Need to Debt Finance
Majority of Capital Program
Rate Increase History
11
Fiscal
Year
City
Increase Reason
MDC
Pass-Through
Water
MDC
Pass-Through
Sewer
Stormwater
Actual Reason
Stormwater
Proposed
2017 2.80%Rate Study 0.00%5.73%36.0%Rate Study 36.0%
2018 2.78%CPI 5.77%4.95%2.8%Rate Study 2.8%
2019 3.50%CPI -3.89%0.00%3.5%CPI 22.5%
2020 2.90%CPI -4.11%3.29%2.9%CPI 2.8%
2021 0.00%Rate Study 6.17%3.18%2.0%CPI 2.8%
2022 1.00%Rate Study 3.88%5.37%1.1%CPI 2.8%
2023 3.61%Rate Study 3.37%7.72%7.1%CPI 4.6%
2024 3.64%Rate Study 22.77%5.32%9.9%CPI 9.9%
2025 3.66%Rate Study 1.45%-3.35%5.7%CPI 5.7%
2026 1.61%CPI 2.81%19.05%2.8%CPI 2.8%
Water/Sewer Stormwater
Proposed Combined Bill - Condo
12
▪Combined Bill for Water/Sewer and Stormwater Service Is Well
Below EPA's 4.5% of Median Household Income Affordability
Threshold for Water and Sewer Service Only•Financial and Rate Plan Considered Affordable By Utility Industry
Standards
Perspective:
Comparing 3¢ to
4¢ per gallon to
the cost per
gallon of other
commodities
(e.g., bottled
water, milk, gas)
shows the value
of utility service!
Combined Utility Bill of Multi-Family Residential Customer
Amount %
Existing $104.14 1.7%
2027 10/1/2026 $115.91 $11.77 11%2.7¢1.9%
2028 10/1/2027 $129.42 13.51 12%3.0¢2.0%
2029 10/1/2028 $142.63 13.21 10%3.3¢2.1%
2030 10/1/2029 $153.79 11.17 8%3.6¢2.3%
2031 10/1/2030 $165.30 11.51 7%3.8¢2.3%
2032 10/1/2031 $170.46 5.16 3%4.0¢2.4%
MFR = Multi Family Residential
[1] Assumes same gallons of water and sewer monthly usage as February 2026 utility bill.
[2] Total bill divided by total gallons.
[3] Assumes annual 3% cost of living salary increases throughout the Forecast Period
% of Median
Household
Income [3]
Increase in MFR
Customer
Monthly Bill
Total Cost
Per Gallon
[2]
Combined Bill
for MFR
Customers [1]
Fiscal
Year Effective Date
Proposed Combined Bill
13
▪Combined Bill for Water/Sewer and Stormwater Service Is Well
Below EPA's 4.5% of Median Household Income Affordability
Threshold for Water and Sewer Service Only•Financial and Rate Plan Considered Affordable By Utility Industry
Standards
Combined % of Median
Fiscal Effective Bill for SFR Total Cost Household
Year Date Customer [1]Amount %Per Gallon [2]Income [3]
Existing 138.41$ 2.3%
2027 10/1/2026 153.73 $15.32 11.1%3.1¢2.5%
2028 10/1/2027 168.11 14.38 9.4%3.4¢2.6%
2029 10/1/2028 183.04 14.93 8.9%3.7¢2.8%
2030 10/1/2029 196.49 13.45 7.3%3.9¢2.9%
2031 10/1/2030 210.50 14.01 7.1%4.2¢3.0%
2032 10/1/2031 216.66 6.16 2.9%4.3¢3.0%
Increase in SFR
[1] Assumes 5,000 gallons of water and sewer monthly usage. Does not include future pass-
through adjustments for increases in wholesale rates from Miami-Dade County.
[2] Total bill divided by 5,000 gallons.
SFR = Single Family Residential
[3] Assumes annual 3% cost of living salary increases throughout the Forecast Period
Customer
Monthly Bill
Combined Utility Bill for Single Family Residential Customer Perspective:
Comparing 3¢ to
4¢ per gallon to
the cost per
gallon of other
commodities
(e.g., bottled
water, milk, gas)
shows the value
of utility service!
Proposed Combined Bill
14
▪Combined Bill for Water/Sewer and Stormwater Service Is Well
Below EPA's 4.5% of Median Household Income Affordability
Threshold for Water and Sewer Service Only•Financial and Rate Plan Considered Affordable By Utility Industry
Standards
Perspective:
Comparing 3¢ to
4¢ per gallon to
the cost per
gallon of other
commodities
(e.g., bottled
water, milk, gas)
shows the value
of utility service!
Combined % of Median
Fiscal Effective Bill for SFR Total Cost Household
Year Date Customer [1]Amount %
Per Gallon
[2]Income [3]
Existing $172.53 2.8%
2027 10/1/2026 190.11 $17.58 10.2%2.7¢3.0%
2028 10/1/2027 206.83 16.72 8.8%3.0¢3.2%
2029 10/1/2028 224.28 17.45 8.4%3.2¢3.4%
2030 10/1/2029 240.41 16.13 7.2%3.4¢3.5%
2031 10/1/2030 257.28 16.87 7.0%3.7¢3.7%
2032 10/1/2031 264.78 7.50 2.9%3.8¢3.7%
SFR = Single Family Residential
Combined Utility Bill for Single Family Residential Customer
Increase in SFR
Customer
Monthly Bill
[1] Assumes 7,000 gallons of water and sewer monthly usage. Does not include future pass-
through adjustments for increases in wholesale rates from Miami-Dade County.
[2] Total bill divided by 7,000 gallons.
[3] Assumes annual 3% cost of living salary increases throughout the Forecast Period
15
▪Utility Infrastructure Issues Will Not Go Away and Will
Worsen Over Time Until City Addresses Them•Future Additional Consent Orders, Fines, and Associated Legal Expenses
▪Possible Bond Rating Downgrade at Any Time Following
Inaction
▪Loss of Access to Capital Markets / Debt Financing•100% Pay-As-You-Go Funding of Capital Program Would Require Much
Higher Rate Increases
▪Loss of Grant Funding
▪Higher Future Rate Increases and Inability to Gradually
Phase-In Increases
Operational and
Financial Risks of Inaction
Recommendations
16
▪Adopt Proposed Multi-Year Schedule of Water,
Sewer, and Stormwater Rates
QUESTIONS AND DISCUSSION
AQ