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Posted on September 5, 2017
Tallahassee Reports has learned that the City of Tallahassee is projecting rate increases for city water customers and solid waste services in 2018.
For city water customers, a preliminary analysis indicates that the rate impact for residential water and sewer customers beginning in 2018 will be approximately $3.00 per month or $36.00 per year.
Small commercial bill impacts (100 cgals) are expected to be about about $5.00 per month or $60 per year.
These increases are in addition to a 2.4% increase approved for an inflation adjustment that will take effect in late 2017.
In addition, the City of Tallahassee’s solid waste rates are projected to increase by approximately 7.5% in 2017.
The City’s current solid waste rates were approved by the Commission on December 9, 2015. Due to better-than-expected results, a temporary 5% reduction in solid waste rates was enacted for the period January through December of 2016. This reduction resulted in savings to customers of approximately $1 million. On January 1, 2017, rates reverted to their previous levels.
Based upon rate study results, staff recommends that rates for all solid waste customers be increased by 2.4% effective October 1, 2017, which represents the 12-month change in the CPI during the period ended March 31, 2017. This adjustment matches the increases to be applied to electric and gas rates.
In addition, in order to address the expected shortfall in revenues for FY 2018 and subsequent years, staff recommends that commercial rates be increased an additional 2.6% effective January 1, 2018, which will result in approximately $265,000 in additional revenue on an annual basis.
TR will have more analysis of the City of Tallahassee budget in the coming days.