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CASSELBERRY CITY COMMISSION Minutes of July 25, 2022 —Regular Meeting Page 11 of 20 10. FIRST READING OF ORDINANCES A. Ordinance 22-1569 — Amending Various Utility Rate Sections of Chapter 86 of the City Code, Utilities The City Clerk read Ordinance 22-1569 by title, as follows: "AN ORDINANCE OF THE CITY OF CASSELBERRY, FLORIDA, AMENDING SECTIONS 86- 68,86 -72,86-186,86-188,86-189 6- 68,86-72,86-186,86-188,86-189 AND 86-223 OF CHAPTER 86, UTILITIES, OF THE CITY CODE OF ORDINANCES, TO ESTABLISH NEW SEWER, RECLAIMED WATER AND WATER FEES AND CHARGES FOR ALL RESIDENTIAL, COMMERCIAL AND MULTIFAMILY RESIDENTIAL SEWER, RECLAIMED WATER AND WATER SERVICE PROVIDED BY THE CITY OF CASSELBERRY; PROVIDING FOR ANNUAL ADJUSTMENTS OF RATES; PROVIDING FOR CODIFICATION, CONFLICTS, SEVERABILITY AND AN EFFECTIVE DATE." Staff Presentation: City Attorney Katie Reischmann stated that hard copies of the proposed ordinance had been provided to the City Commission for the meeting as it had been amended from the initial version in the packets to edit out some Code provisions that were not proposed to be changed, leaving only those that did include proposed changes. She noted also that the effective date had been changed to clarify that there were one or two sections which would be effective December 1St, with the remainder being effective October 111. Utility Divisions Director Tara Lamoureux stated that the last utility rate study was done in 2017 and gave a brief overview of how the current five-year rate study had been performed which resulted in the ordinance being presented to the City Commission tonight. She then introduced Henry Thomas and Trevor McCarthy, Vice President and Consultant, respectively, with Raftelis, the company which had been selected by the City to conduct the City's Five -Year Water, Wastewater, and Reclaimed Water Rate Study. Trevor McCarthy then gave a presentation detailing the results of the Rate Study. The proposed rate increases are projected to meet the revenue requirements of the system over the forecast period and allow rate increases to be deferred through Fiscal Year 2024, with a 4% rate increase proposed to be effective October 1, 2024 and each October 1St thereafter through Fiscal Year 2027. The proposed System Development Charges and miscellaneous fees should be updated to reflect the current cost of serving new development. Raftelis is proposing an increase in System Development Charges from $1,924.00 to $2,633.00 total for both water and wastewater. The adjustments are proposed to be effective on or after October 1, 2022. Raftelis also recommends that the City continue reviewing the rates and charges at least every five (5) years or as conditions and assumptions materially change. Discussion: Discussion ensued which included the Five -Year Capital Improvement Plan; ARPA (Americans with Disabilities Act) funding; utility rate comparisons with peer cities and other local governments; indexing of rate increases and use of Consumer Price Index (CPI) for adjustment of rates by other governmental entities; inflationary impacts on local utilities; and the healthy status of the City's utility system both as to infrastructure and financially due to the ongoing capital investment in its infrastructure, renewal and replacement, and use of ARPA funds and existing cash reserves to fund those capital projects. Budget Impact: Adoption of Ordinance 22-1569 should not have much impact on revenues in FY23.