Lake Worth Water Rate Study Presentation

Comment Up In spite of Vice Mayor Maxwell being political at every opportunity last night as well as trying to find fault with what he believes are high water rates, or even finding anything/something to criticize for our decision to build our Reverse Osmosis, the presentation was positive. No one ever mentioned the Bond that we are repaying for our electric upgrade and our RO that affects rates until paid off. Everyone knew when we built our RO that it would cost a lot of bucks but it was still less than going with Palm Beach County water. Those cities in the sub-regional sewer system owe us a fortune found by a 2005 audit. Everyone rung their hands as to what to do back then as it involved ten million dollars. All those cities knew they owed us but because they were not billed, failed to pay us and we swept it all under the rug. Four years later after Susan Stanton was hired, she turned over that rug and went after the money. It was said that by the time the case is settled it will be another two years as we are going through a government process (Chapter 164 Florida Statutes) in order to resolve the issue. Because of this non-payment by regional customers, the rates have been charged to Lake Worth customers and will continue along that vein until this dispute is solved. We buy water from West Palm Beach that serves the Lake Worth beach. The cost of water, the cost of the pipes and the cost of billing has zero impact on the rest of Lake Worth's customers. Maxwell was very concerned about this. When asked by Maxwell regarding water at the Park of Commerce, the Assistant Utility Director, Clay Lindstrom said, "We are in a position to provide water and sewer to the Park of Commerce. The Park of Commerce is now Maxwell's number one goal, a switch from slum and blight. Also stated was that our permits are all in place, another concern of Maxwell's and a myth that has been circulating for quite some time that we needed a permit. We can now formally put that one to rest. All in all, our water department is looking good, producing the best tasting water around. Utility Rate Study Update for Lake Worth by Burton & Associates, a firm that does a rate study yearly: Water System: Reduce rate adjustment for FY 2013 from 5.25% to 0.00% Adopt new multi-year schedule of rates as presented through FY 2016 0% in FY 2014, 4.50% in FY 2015 and FY 2016 Regional Sewer System: Reduce O&M rate adjustment for FY 2013 from 20% to 15% Continue efforts to receive full payment from members Consider adopting FY 2014 rate adjustment of 5% as presented herein Local Sewer System: Reduce rate adjustments for FY 2013 from 13% to 0% Do not adopt any future rate adjustments at this time Dependent upon resolution of Regional Sewer collection issues by FY 2015 All Systems: Continue to Perform Annual Updates Account for changes in costs, demands, regulations, etc.