INFORMATION IS SUBJECT TO CLARIFICATION, CHANGES AND UPDATES; NOT OFFICIAL CITY DOCUMENT
The City of Gulfport updates water/sewer rates based on the rate increases by the City of St Petersburg.
There is a great deal of information in the 30 year old "Inter-Local Agreement" between the City of St Petersburg and City of Gulfport that governs annual rate increases, how they are developed and communicated to Gulfport, including rate requirements based on what St Petersburg charges their customers. One key factor in the Agreement is the required annual "Utility Rate Study." See link below to see the FY18 study -- please note that the St Petersburg webpage alerts readers "since this presentation was made, the figures have been adjusted and reconciled to reflect a more accurate sense of spending and funding..." (data and numbers change often until finalized; St Petersburg communicates regularly with Gulfport).
Proposed Fiscal Year 2017/2018 City of St. Petersburg Wholesale Utility Cost Increases (estimated) - Water 6% and Sewer (Wastewater Treatment) 15% increases for this upcoming year. [See UPDATE below]
It is anticipated that similar City of St. Petersburg Wholesale Utility Cost Increases - can be expected to be levied in Fiscal Year 2018/2019.
UPDATE: As of mid-July, the City of St Petersburg proposed the following increases to their customers:
Important: Based on the St Petersburg-Gulfport Inter-Local Agreement, Gulfport cannot (against terms of the agreement) charge its customers a rate less then St Petersburg is charging its customers
Graphic below shows rates for both St Petersburg and Gulfport: Current and Proposed -- 4,000 Gallon Water Consumption
In the illustration above, St Petersburg shows a 4.00% water rate increase, 17.50% sewer rate increase and a 5.56% stormwater rate incease (red zeros: rates not yet posted). Gulfport shows the 9.75% water rate increase, 20.00% sewer increase and 9.75% stormwater increase. NOTE: Gulfport cannot be lower then any St Petersburg customer rate (contract compliance).
Note: 45% of Gulfport customers are at the 2,000 gallon consumption level. The new total for these consumers, based on the percent increases, estimates at $67.19 (compares to the $107.45 above for 4,000 water consumption customers).
Below are the new/proposed rate tables from Gulfport Ordinances 2017-07, 2017-08 and 2017-09
water (top), sewer (middle) and stormwater (bottom) -- see bottom of page for link to the Ordinances
GULFPORT PAYMENT(S) DUE TO THE CITY OF ST. PETERSBURG
We have discussed the last few years that the 30 year "Inter-Local Agreement Between the City of St Petersburg and the City of Gulfport," for water and sewer services (does not include stormwater), expires in 2018. As with each and every other agreement that St Petersburg has with other surrounding cities, a "25% Water and Wastewater Treatment Surcharge" is required by State Statute to be paid to the City of St Petersburg by the City of Gulfport. The state statute can be found in Chapter 180.191 (see below). This is a state mandate.
180.191 Limitation on rates charged consumer outside city limits.--
(1) Any municipality within the state operating a water or sewer utility outside of the boundaries of such municipality shall charge consumers outside the boundaries rates, fees, and charges determined in one of the following manners:
(a) It may charge the same rates, fees, and charges as consumers inside the municipal boundaries. However, in addition thereto, the municipality may add a surcharge of not more than 25 percent of such rates, fees, and charges to consumers outside the boundaries.Fixing of such rates, fees, and charges in this manner shall not require a public hearing except as may be provided for service to consumers inside the municipality.
With the expiration of the City’s present 30 year agreement with the City of St. Petersburg for the purchase of water and wastewater treatment – the Proposed Fiscal Year 2018/2019 City of St. Petersburg Utility Agreement(s) will include an applicable 25% State Statute provided for Water and Wastewater Treatment Surcharge
Update estimated total impact (increase from initially estimated $720,000 – increase in utility expenses per Fiscal Year 2017/2018 as wholesale cost increases). The number is expected to be higher, compounding much higher year after year
Additionally, it is anticipated that City of St. Petersburg Wholesale Utility Cost Increases will be levied in Fiscal Year 2018/2019 further impacting and compounding on the scheduled 25% Surcharge.
The proposed water, sewer and stormwater rate increase will also assist in payment of the surcharge. First payment (again expected to be higher than the original estimate of $720,000) must be paid in FY 2018/2019, with payments at this or higher levels due each following year.