BALANCE SHEET BLOG – HOLLYWOOD, FL


Water/Sewer Rates Increasing: 2009
June 16, 2009, 12:12 AM
Filed under: Infrastructure, Water-Sewer-Sanitation

June 16, 2009

The Cost of Water

The City’s explanation for recent water rate increases:

“Why is the increase so much? There are several factors driving the new rate structure and increases. The old rates would not have allowed the City to pay for system improvements needed to meet newly adopted state and federal regulations. Additionally, the majority of Hollywood’s water and wastewater infrastructure was built before 1970. This means in the years ahead much of this infrastructure will need to be replaced.”

The City’s explanation for how our new, higher water payments are used.

“What do water and wastewater base charges pay for? The base charges pay for the fixed costs associated with managing the water and wastewater accounts.    The base charges also cover a portion of operating costs.”

“What do water and wastewater consumption/usage charges pay for? Consumption charges cover capital costs, repair and maintenance costs and the portion of operating costs not covered by base charges. This includes expenses such as debt service (bond or loan repayment), engineering and administration costs and regulatory compliance costs.”

The Commissioners said the city needs to raise rates to generate money to pay for more than $200 million in upgrades to Hollywood’s aging infrastructure. Sun Sentinel_ 10/21/09

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