TO: Mayor and City Commission
FROM: Douglas E. Smith, City Manager
DATE: September 2, 2015
Title
AN ORDINANCE AMENDING THE CODE OF THE CITY OF MARGATE, FLORIDA, CHAPTER 39, WATER AND SEWERS, DEPARTMENT OF ENVIRONMENTAL AND ENGINEERING SERVICES, SECTION 39-71. RATES ESTABLISHED; PROVIDING FOR WATER AND WASTEWATER UTILITY RATES INSIDE MARGATE MUNICIPAL BOUNDARIES; PROVIDING FOR WATER AND WASTEWATER UTILITY RATES OUTSIDE OF MARGATE MUNICIPAL BOUNDARIES; PROVIDING FOR REPEAL; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING FOR AN EFFECTIVE DATE.
BACKGROUND: The attached ordinance provides for increases to water and wastewater user rates effective October 1, 2015. The estimates used in the DEES - Asset Management Plan workshop on July 8, 2015 were based on two (2) percent increase to the consumer price index (CPI); however, the percentage change to the CPI for 2015 as provided in this ordinance is 1.2 percent. As such, the new rates reflect a 1.2 percent increase effective October 1, 2015. In addition, the ordinance provides for yearly CPI adjustments through Fiscal Year 2021 with a cap not to exceed five (5) percent for any year and a floor of not less than one (1) percent. Authorization to Advertise was approved at the August 26, 2015, Regular City Commission meeting.
RECOMMENDATION: Approve
FISCAL IMPACT: 1.2% increase effective October 1, 2015 and subsequent yearly CPI adjustments
CONTACT PERSON: Reddy Chitepu, P.E., Director of DEES