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Century Water System Plan Could Mean Significant Rate Increase
June 22, 2020
A significant rate increase could be in the future for Century water customers. if the town council follows a plan they recently approved.
A Century Water System Asset Management and Fiscal Sustainability Plan created by the Florida Rural Water Association (FRWA) found the need for the rate increase, plus increased costs for commercial customers, the prison and possibly water system customers that are outside of the town limits.
For an average family using 5,000 gallons per month, the monthly average water bill is currently about $21.36.
“Although this rate may be minimally sufficient for current operations, the improvements recommended may require a cost adjustment to be financially sustainable,” the Florida Rural Water Association found, also noting commercial accounts currently pay the same rate as residential customers, and that should be changed.
“Although this rate may be minimally sufficient for current operations, the improvements recommended may require a cost adjustment to be financially sustainable,” the report stated.
The Century Correctional Institution accounts for just over half of all the affluent into Century’s wastewater treatment plant, “yet is billed very little comparatively”, and the FRWA recommended that the Florida Department of Corrections pay their fair share.
Without increased rates for the prison and commercial accounts, the FRWA said “an overly cumbersome burden” will be placed on residential customers to pay for mandated rehabilitations.
In order to accomplish an estimated $561,305 in needed capital needs water system improvements and to set aside needed reserve funds, water rates would need to be increased 32.3% in year one with additional smaller increases in each of four additional years.
The plan is only recommendations from FRWA. A rate study would likely first determine the exact amount of any rate increase before it is implemented with the approval of the town council.
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June 22, 2020 at 11:34AM
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Century Water System Plan Could Mean Significant Rate Increase - NorthEscambia.com
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