Winter Haven to vote on increases to water and sewer rates, connection fees

WINTER HAVEN — On Monday, the Winter Haven City Commission will vote on a 2.5% increase to its water and sewer rate. 

If approved, the increase will come from a reinstitution of the 2.5% consumer price index. The consumer price index is a "measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services," according to the U.S. Bureau of Labor Statistics. 

"That will help us stay in line with revenue and expenses over time," City Manager Mike Herr told commissioners at a Jan. 5 special session, "as opposed to not doing that, and having to have a huge rate increase that at times can of course have that effect on all, all categories of, of customers that make up our rate structure." 

Herr said the commission has not charged the CPI for the past five or six years.

All rates, fees and charges associated with water, sewer and reclaimed water service will increase automatically each year by no less than 2.5% if the changes are approved. The changes will go into effect each May 1 rather than Oct. 1, the start of the fiscal year, so that residents do not endure two rate increases this year.

Based on conversation at the Jan. 10 meeting, commissioners seem poised to approve the change. 

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"The fundamental purpose of the 2.5% is to try to keep the rates current with our operating expenses and our capital expenses with respect to the impact on inflation and increased prices," Herr said. "If we keep the 2.5% in place, I think it should prevent us from having a gigantic rate increase every five years and hitting your customer class with a huge rate."

Connection fees see higher price hike

Commissioners will also vote on whether to raise connection fees for residential connections to water and sewer. The proposed increases are to go from $1,121.34 to $1,669.50 for water connection and an increase from $3,637.76 to $4,196.50 for sewer connection. 

Those are increases of 49% and 15%, respectively. 

The suggestion to raise the fees stems from a 2021 water and wastewater connection fee study performed by Raftelis Financial Consultants Inc. The study "provided a thorough fiscal analysis of the City's water and sewer capital requirements, actual revenues generated and expected revenues generated from water and sewer connection fees," according to the city.

The proposed increases are the maximum amounts Raftelis suggested.

Raftelis recommended that the city revise its rate schedule for water and sewer connection fees to rates and net amounts that are "equitable."

The increases are necessary due to Winter Haven's growth and increases in costs for future water supplies, according to the city.

Currently, combined water and sewer connection fees total $4,759.10 for Winter Haven and are proposed to increase to $5,866, an overall increase of 23.3%. 

The increased fees would only apply to new construction and go into effect May 1.

According to a chart shown to commissioners based on 2021 rates, that will put Winter Haven well above Lakeland's total fees at $2,966. But the fees will come below a similarly-sized city, Auburndale, at $6,475, and also below Polk County as a whole, which charges $7,039. 

The average combined cost for surrounding cities is $4,974.33.

If the new rates are approved, the city will revisit the rates no later than five years from now. The fees were last evaluated in 2006. 

City commissioners will vote on both increases at the 6 p.m. Monday meeting following a public hearing. 

Maya Lora can be reached with tips or questions at mlora@gannett.com. Follow her on Twitter @mayaklora.