The Apopka City Council, at its September 18th budget hearing for fiscal year 2024-25, voted to increase its millage rate from 4.1876 to 4.6876. It also increased the rates of water, wastewater, and sewer by 23.75% and sanitation rates by 10%.
Council voted 4-1 in favor of the sanitation rate increase, with Vice Mayor Diane Velazquez voting against it.
The council voted 5-0 to increase the water, wastewater, and sewer rates and the millage rate increase.
The final budget hearing is scheduled for September 25th at 6 pm.
This developing story will be updated in future editions of The Apopka Voice.
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Before the hearing, the City proposed a 40% rate increase to its residents' water bills but revised its plan to lower the increased rates and explained why it needed to raise them in a post on its website and a mailer to its customers.
Here are the details from the City's website:
Utility Customer Important Information
Reference: Water, Sewer, Reclaimed Water, and Garbage Rate Changes.
Dear Utility Customer,
Please download a copy of the attachment that will be emailed on September 11, 2024 to our Utility Billing Customers.
On August 5, 2024, we notified you of a proposed rate increase for the City’s Fiscal Year 2024/2025, based on study results from the City’s Local Government and Utility Management Rate Consultant, Raftelis. The discussions regarding the rate increase and the financial position of the Utility Operating Fund continue throughout the FY 2025 Budget Development Process as follows:
During the August 28, 2024, Budget Workshop Meeting, City staff, Mayor, and Council discussed reducing the Utility rate increases by cutting the Utility Fund Budget to 20% for water, wastewater, & reclaim water instead of the original proposed rate increases of 40%, 40%, and 15%, respectively. We are hoping that you find this information useful and informative to help you gain a better understanding of the proposed rate increase of 23.75% for the Utility Operating Fund.
The download takes its readers to a letter from Apopka Finance Director Blanche Sherman explaining the increases:
"On August 5, 2024, we notified you of a proposed rate increase for the City’s Fiscal Year 2024/2025, based on study results from the City’s Local Government and Utility Management Rate Consultant, Raftelis. The final study will provide proposed rates and revenue projections for the next five (5) years (FY2025 – FY2029). Due to the proposed rate increases for FY2025, we are continuing to work with the rate consultant to re-evaluate the assumptions included in the analysis, such as the amount of future Capital Improvement Projects (CIP) and debt that will be manageable and affordable for the Water, Wastewater, & Reclaim Fund (Utility Operating Fund) in the future years.
Over the past few months, beginning on July 10, 2024 Budget Workshop Meeting, City staff has discussed the need to increase the City’s Utility Rates due to the significant cost increases and needed improvements. The water and reclaimed water rates were proposed to increase by 40% and 15% each. The sewer (wastewater) rates were proposed to increase by 40%. During this time, City staff and Mayor worked with the Rate Consultant to provide several options for rate increases with the revenue projections for further consideration, prior to formally adopted the proposed rates.
The discussions regarding the rate increase and the financial position of the Utility Operating Fund continue throughout the FY2025 Budget Development Process as follows:
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July 17, 2024, Special Council Meeting (Budget Meeting) – 6:00 p.m.
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August 28, 2024, Budget Workshop Meeting - 5:15 p.m.
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September 4, 2024, Council Meeting - 1:30 p.m.
During the August 28, 2024, Budget Workshop Meeting, City staff, Mayor and Council discussed reducing the Utility rate increases by cutting the Utility Fund Budget to 20% for water, wastewater, & reclaim water instead of the original proposed rate increases of 40%, 40%, and 15%, respectively. The following proposed cuts were discussed:
The meeting ended with $2.2 million in budget cuts for the Utility Operating Fund, resulting in a proposed rate increase of 23.75% for water, wastewater, & reclaim water. The proposed rates at 23.75% are attached (Exhibit 1, 2, & 3) and a chart comparing the City of Apopka to other counties and municipalities is below for your information:
In order for our customers to gain a better understanding of the financial position of the Utility Operating Fund, we are sharing a summary of the Operating & Capital Revenues and Expenses for the past, current, and proposed year. Please see the attached Fund 401 Operating & Capital Trends for more details. In addition, we are sharing with you a list of some of the key projects totaling $19.8 million that were budgeted in FY2024 and prior years and are currently underway. The list is as follows:
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1) Grossenbacher Water Treatment Plant (Well #1, #2, & #3) - $2.4 million (As mandated by the City's SJRWMD CUP Condition #32 (requiring the Upper Floridan Aquifer wells to be deepened or replaced and drilled into the Lower Floridan Aquifer), the City is capping Well #1 and #2 and deepening Well #3. The well's capacity from Well #1 and #2 will be transferred to Well #3.)
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2) Grossenbacher Water Treatment Plant 1.5 (MG) Gallon Storage Tank (GST) Addition - $3.7 million.
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3) Watermain Renewal & Replacement Program - $1.5 million (Annual replacement of 1.25 miles of asbestos
and cast-iron water mains)
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4) Northwest Reclaim Water Storage Ponds - $950,000.
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5) Golden Gem Reuse Pond Retrofit - $950,000.
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6) Vick Road Wastewater System Force Main Upgrade & Repairs - $1.7 million.
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7) Water Collections System Pipeline Rehabilitation & Replacement Program - $500,000.
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8) Lift Stations Renewal & Replacement Program - $3.0 million.
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9) IDWTS Conversion Project – Wekiva Glen Neighborhood - $1.5 million (grant funded).
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10) Vehicles, Equipment & Machinery - $1.6 million.
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11) Other improvements - $2.0 million.
Over the past two (2) years, the projects listed above have increased in cost due to inflation, supply demand issues, and other factors contributed to adverse financial position for the City’s Utility Operating Fund. In order to continue to improve and maintain our Water, Wastewater, and Reuse Systems, unfortunately, we will need to make a significant increase in our rates. In addition, we continue to work more efficiently and effectively to give our residents the highest quality water at the lowest rate.
We are hoping that you find this information useful and informative to help you gain a better understanding of the proposed rate increase of 23.75% for the Utility Operating Fund."
Apopka Vice Mayor Diane Velazquez was skeptical of the process.
"The water increase was reduced to 23%," she said. "Between the last workshop of 8/28/2024 to the Council Meeting of 9/4/2024, I learned of the 6,000 defunct residential water meters not reading the actual water usage. That information was not shared with Commissioners during any of the workshops. The residents who showed up at the public council meeting on 9/4/2024 to speak about the water increase of 40% had in their hands the original letter informing them of the 40% increase; they were unaware the 40% had been reduced to 23%.
There was a Lack of communication of this information to the public. Admittedly, after hearing the public comments by those residents, even 23% still presented a financial burden. In addition to their concerns, the new information disclosed was that 6,000 water meters were not reading actual usage. My concern is the proposed increase in building a reserve to address the current infrastructure problems.
I have often expressed we don’t always have all the information. How long have those 6,000 meters not reading the actual usage? Golden Gem, what is the financial impact on the city to repair?"
The first budget hearing is scheduled for September 18th at 6 p.m., followed by the regular City Council meeting at 7 p.m. The final budget hearing is scheduled for September 25th at 6 p.m. All three meetings will be held at Apopka City Hall Council Chambers.
