Submitted By: Rusella Bowes-Johnson
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Presentation By: Sean Lanier
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Adopt Resolution 2025-31 concerning a new sewage rate schedule pursuant to section 70-301, City Code, a new water rate schedule pursuant to section 70-416, City Code, and new reclaimed water service fees and connection fees pursuant to section 70-358, City Code, effective October 1, 2025
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
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BACKGROUND:
The City's last rate study concluded in Fiscal Year 2021, which established utility rates for the next five years. The current water, wastewater, and reclaimed water rates and charges have been in effect since October 1, 2024. The Water Resources department worked with Raftelis Financial Consultants, Inc. ("Raftelis") to develop a financial forecast to determine sufficient revenue needs to support system operations and maintenance and identify funding to pay for capital expenditures for system repairs, upgrades, and expansions.
FINDINGS AND CONCLUSIONS:
As presented to the Utility Advisory Board on April 16, 2025, and the City Council on April 29, 2025, the Water Resources Fund needs to fund operating reserves and capital improvements. This fund has supported operations by minimizing expenses and delaying capital projects. The water and wastewater infrastructure has continuing needs for system repairs, upgrades, and expansions to maintain public health and safety, and to meet regulatory requirements.
Capital improvement projects are currently being funded from reserves. The rate study analysis determined that it is not sustainable to continue to fund capital improvement needs with reserves alone.
As presented to the City Council, Raftelis recommends annual 5% rate adjustments for residential and residential/commercial customers. As outlined in the rate stu...
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