TO: Mayor and City Commission
FROM: Douglas E. Smith, City Manager
DATE: September 16, 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 on August 26, 2015 and the First Reading of the Ordinance was approved on September 2, 2015.
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