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Highlands Today

Avon Park seeks equitable utility rate increase

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By MARC VALERO

Highlands Today

Published: June 29, 2009

AVON PARK - City water and sewer rates will likely go up, but the Avon Park City Council doesn't want businesses to bear the brunt of the increase.

Councilman Joe Wright noted recently that a business that used 200,000 gallons of water a month would see a water bill increase of 225 percent, according to the proposed Florida Rural Water Association's rate study.

Councilman George Hall said, "There will be businesses in this town that if we raise their water rates according to this, they will either not continue to do business in this town or they will go elsewhere."

According to the rate study, the city's water and wastewater rates are inadequate to meet the city's revenue requirements.

Thomas Gustafson of the Florida Rural Water Association said Avon Park's water rates need to be increased by 30 percent and wastewater rates increased by 35 percent to meet the full cost of operating the systems.

An additional 12.5 percent would be needed for both systems to fully fund infrastructure rehabilitation needs, he added.

Under the proposed rate structure presented to the council, the typical residential water bill for a customer using 6,000 gallons per month would go down slightly from $17.08 to $16.64.

Also, under the proposal, customers using less than 1,000 gallons per month would see their bills drop from $9.94 to $7.85.

But large volume users would see their water bills increase.

Similarly, the monthly wastewater bill would be lower for those using less than 3,000 gallons per month, but the average and high users would see an increase in their bill.

The state requires rates to be higher for larger volume users to encourage conservation.

"I would hate to punish businesses," said city Councilman Al Joe Hinson.

Mayor Sharon Schuler said she agrees with Hinson. Though the city needs to increase its rates, businesses should not be penalized with a very large increase, she said.

Hall noted that with most items, there is a volume discount.

"Except with the city of Avon Park and their water - if I buy one gallon I get it for cheap, if I buy semi-truck load full I pay a premium. That doesn't make sense," he said. The businesses will have to pass on the costs to their customers, he added.

Wright made a blunt assessment.

"We just frankly don't measure up to some other parts of the county. We do not need to create a disincentive - first of all to attract businesses here and second we don't need to chase away the businesses that we have," he said.

The council will discuss the utility rates and other budget issues at a special meeting at 6 p.m., July 13.

Highlands Today reporter Marc Valero can be reached at 386-5826 or mvalero@highlandstoday.com

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