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CASSELBERRY CITY COMMISSION Minutes of November 16, 2020 — Regular Meeting Page 13 of 22 11. PUBLIC HEARINGS A. Second Reading of Ordinance 20-1541 — Amending Section 86-72 Schedule of Rates and Charges of Article II "Sewers" Division 3 Application for Services; Rates and Charges and Amending Section 86-189 Schedule of Rates and Charges of Article III, "Water" Division 2 Rates and Charges of the City Code of Ordinances The City Clerk read Ordinance 20-1541 by title, as follows: "AN ORDINANCE OF THE CITY OF CASSELBERRY, FLORIDA, AMENDING SECTION 86- 72, "SCHEDULE OF RATES AND CHARGES" OF ARTICLE II, "SEWERS", DIVISION 3, "APPLICATION FOR SERVICES; RATES AND CHARGES"; AND AMENDING SECTION 86- 189, "SCHEDULE OF RATES AND CHARGES" OF ARTICLE III, "WATER", DIVISION 2, "RATES AND CHARGES" TO MODIFY THE NUMBER OF GALLONS INCLUDED IN THE MINIMUM MONTHLY CHARGE FOR WATER AND SEWER FROM 4000 TO 5000 GALLONS, AND TO CHANGE THE SECOND AND THIRD TIER OF WATER CHARGES TO ENCOMPASS USAGE UP TO 10,000 GALLONS, TO EFFECTIVELY REDUCE WATER AND SEWER CHARGES FOR THE CITY'S RESIDENTIAL UTILITY CUSTOMERS; PROVIDING FOR CODIFICATION, CONFLICTS, SEVERABILITY AND AN EFFECTIVE DATE." Notice of Public Hearing: The Notice of Public Hearing relative to Ordinance 20-1541 was advertised in the Orlando Sentinel on Thursday, November 5, 2020. Staff Presentation: City Manager Randy Newlon stated that Ordinance 20-1541 provides for modification to the number of gallons included in the minimum monthly charges for residential water and sewer from 4,000 to 5,000 gallons, and changes the second and third tier of water charges to encompass usage up to 10,000 gallons in the second tier. He noted that the proposed changes to the tier structure were being made to give some relief to customers who had experienced spikes in their bills as a result of the ongoing COVID- 19 pandemic. In response to questions from the City Commission, Mr. Newlon clarified that with the increase in the maximum usage for the first tier, the majority of the City's customers would remain in tier one and not be moved into the higher rate of tier two when experiencing increased monthly usage, and that the new rates would be effective for any meters read after the effective date of November 181". Budget Impact: It is believed that revenue lost due to the change in tiers will be offset by higher demand. Demand has been higher than projected because customers have been spending more time at home. Therefore, no budget change is required. Future revenues will be reviewed and considered against expected returns. A budget amendment may be recommended at a later date. Recommendation: The City Manager and the Finance Director recommended adoption of Ordinance 20- 1541. Public Hearing: Mayor Henson stated this was a public hearing to hear and consider comments and questions regarding Ordinance 20-1541. Mayor Henson opened the floor for public participation. No one came forward to address Ordinance 20-1541. Mayor Henson closed the public hearing relative to Ordinance 20-1541.