The resolution establishes rates for electric and wastewater utilities through fiscal year 2027 in Gainesville, Florida. It increases electric rates by 7% and wastewater rates by 5% for fiscal year 2022, and then increases electric rates by 3% and wastewater rates by 5% annually through 2027. It also directs staff to develop assistance programs to mitigate the financial impacts of the rate increases on low-income residents. The rate increases are necessary because utility revenues have not kept pace with rising costs due to factors like investments in renewable energy and conservation efforts decreasing usage.
The resolution establishes rates for electric and wastewater utilities through fiscal year 2027 in Gainesville, Florida. It increases electric rates by 7% and wastewater rates by 5% for fiscal year 2022, and then increases electric rates by 3% and wastewater rates by 5% annually through 2027. It also directs staff to develop assistance programs to mitigate the financial impacts of the rate increases on low-income residents. The rate increases are necessary because utility revenues have not kept pace with rising costs due to factors like investments in renewable energy and conservation efforts decreasing usage.
The resolution establishes rates for electric and wastewater utilities through fiscal year 2027 in Gainesville, Florida. It increases electric rates by 7% and wastewater rates by 5% for fiscal year 2022, and then increases electric rates by 3% and wastewater rates by 5% annually through 2027. It also directs staff to develop assistance programs to mitigate the financial impacts of the rate increases on low-income residents. The rate increases are necessary because utility revenues have not kept pace with rising costs due to factors like investments in renewable energy and conservation efforts decreasing usage.
The resolution establishes rates for electric and wastewater utilities through fiscal year 2027 in Gainesville, Florida. It increases electric rates by 7% and wastewater rates by 5% for fiscal year 2022, and then increases electric rates by 3% and wastewater rates by 5% annually through 2027. It also directs staff to develop assistance programs to mitigate the financial impacts of the rate increases on low-income residents. The rate increases are necessary because utility revenues have not kept pace with rising costs due to factors like investments in renewable energy and conservation efforts decreasing usage.
3 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF GAINESVILLE
4 RESOLVING TO ESTABLISH RATES FOR ELECTRIC AND WASTEWATER 5 THROUGH FISCAL YEAR 2027; RESOLVING TO ESTABLISH UTILITY RATE 6 ASSISTANCE PROGRAMS; PROVIDING AN IMMEDIATE EFFECTIVE DATE 7
8 Whereas, at its May 12, 2021, City Commission meeting, the commission heard a 9 presentation from the staff of the utilities, analyzing the utilities’ budget for fiscal year 2022; and 10 Whereas, during the presentation the utility staff explained that revenues from utility 11 operations were not keeping pace with rising costs. Revenues were not keeping pace with rising 12 costs, in part because of low customer growth but also because the city’s conservation efforts 13 were successful which meant a decrease in revenue; and
14 Whereas, while the low growth level in utility revenue is not unique to the city’s utilities, 15 there are unique characteristics to Gainesville’s utilities that have affected a need for increased 16 rates. The unique characteristics to Gainesville’s utilities include: 1) prior decisions to increase 17 renewable energy; 2) higher levels of debt because of the commitment to renewable energy; 3) 18 higher electric rates because of the higher debt levels; and 19 Whereas, in prior budget years, the utility has reduced its operation and maintenance 20 expenses, and reduced its full-time employees; and 21 Whereas, in this current budget analysis and planning for fiscal year 2022, the City 22 Commission requested that utility staff review their budget to determine if there were additional 23 cuts that could be made; and 24 Whereas, at the City Commission meeting on June 7, 2021, utility staff reported that they 25 had again reviewed the budget and there was less than $2 million in their budget that might be 26 considered discretionary cuts; and 27 Whereas, at its June 7, 2021, commission meeting, the City Commission approved 1) 28 adopting a rate ordinance increasing electric utility rates 7% and wastewater utility rates 5% for 29 fiscal year 2022; 2) adopting a resolution reducing the amount of the general fund transfer by $2 30 million a year through 2027; 3) adopting a rate ordinance through fiscal year 2027, increasing 31 electric utility rates by 3% and wastewater utility rates by 5% annually for fiscal years 2023 32 through 2027; and 4) requiring staff to report back to the City Commission with eligibility 33 requirements and guidelines and a program for i) recurring assistance for neighbors impacted by 34 rising utility costs; and ii) requiring staff to report back to the City Commission with eligibility 35 requirements and guidelines for a program to provide recurring assistance for neighbors most 36 impacted by rising utility costs. and 37 Whereas, the benefits of these actions include: 1) the sustainability of the utility; 2) a 38 more normalized rate adjustment annually for customers to rely upon and budget for; 3) fully 39 funding the customer information system and advanced meter infrastructure system; 4) 40 preventing utility employee layoffs; and 5) allowing the commission to defease debt; and
41 Whereas, the City Commission finds that the rate increases will fulfill its stated mission to 42 provide safe, reliable, competitively priced utility services in an environmentally responsible 43 manner to enhance the quality of life in our community. 44 NOW, THEREFORE, THE CITY COMMISSION RESOLVES THAT:
45 1. The Commission will consider adoption of an ordinance that increases electric rates by 46 7% and wastewater rates by 5% for fiscal year 2022 and that increases electric rates by 47 3% and wastewater rates by 5% annually for fiscal years 2023 through 2027. 48 49 2. The Commission will consider assistance programs and funding to mitigate the financial 50 impacts to those most negatively affected by the above described utility rate increases. 51
52 This Resolution will take effect immediately upon adoption.
53
54 PASSED AND ADOPTED this ______ day of ________________________, 2021.
55 56 57 __________________________________ 58 LAUREN POE 59 MAYOR 60 61 Attest: Approved as to form and legality: 62 63 64 __________________________________ 65 OMICHELE D. GAINEY NICOLLE M. SHALLEY 66 CITY CLERK CITY ATTORNEY 67
