Sebring considers sewer/water rate hikes

During discussions at an Aug. 12 budget workshop, the Sebring City Council considered a proposal by its budget committee that could increase the monthly base sewer charge by $5.

That figured out to a 24-percent increase.

Outside-of-city customers could see an increase of $6.26.

"Water typically has always made money for the city," said Bob Boggus, assistant utilities director. "We're not as comfortable as we used to be because water sales are down because of the economy, people have had to cut back, or the water restrictions... that's just been relaxed recently."

They're doing alright on water, he said, so he wasn't recommending increasing the water rates.

Council President John Clark, who headed up the budget committee, said he would support an increase in sewer rates because the city was way out of the ballpark, on the low side with its sewer rates.

"The problem is the sewer has never really paid for itself," Boggus continued, "so we've always subsidized it from the water side. Last year we tried to do a 3 percent on water and sewer, but it never received support."

The last sewer rate increase in the city's Utilities Department was in 2006 by 65 cents, raising sewer customers from $19 to $19.65, per 10,000 gallons of water usage. Prior to that there hadn't been an increase since 1999.

The proposed sewer rate increase would jump it to $24.65, but several council members disagreed with the amount of the hike and others said that there should be an increase at all.

The real issue is revenues are dropping, said Clark, early on in the workshop.

"At this point surely we can't be surprised by that," he said. "And wanting to take a look, and look forward, with our money crystal ball I think we all should be looking to shoot low and hope for better. I think that's the real theme here."

Having a balanced budget does not necessarily mean that you're going to show a profit, said Finance Director Mike Eastman on Thursday afternoon.

"In considering raising rates, the rates need to cover all of the costs such as depreciation, personnel costs, operating costs and interest expenses," he said.

"What are your regular business people doing right now if they don't have the revenue coming in?" asked Councilwoman Margie Rhoades during the workshop. "They're just waiting until things get better to replace things...

"Throughout all of these discussions we're talking about how we need to be conservative and we need to consider the public and then all of a sudden we're going to raise rates $5 a month?" she said.

Councilman John Griffin said from his experience it's not always true in the private sector; that businessmen are waiting to replace things.

"I just had a van break down," he said. "It cost me $1,200 to fix it. I've got to fix it. I've got to have a van. So I've got to have the money to do it."

"Are you raising your rates though?" asked Rhoades.

"I have to," Griffin responded. "My prices are up on all my carpets... and everything I buy, because the manufactures raised my rates. So I have to raise them percentage wise the same amount. I have no choice; otherwise I'm going to be out of business..."

If the city had been raising the rates a little bit at a time, they wouldn't even be sitting there talking about this, said Councilman Bud Whitlock.

Councilman Scott Stanley said he wants to see the enterprise funds start paying something back to the general fund, so they can adjust (lower) the ad valorem tax.

Rhoades reiterated she didn't think it was the time to hit customers with a rate increase.

Three alternatives proposed

The first alternative the city council will discuss on Sept. 7 is a $1 on the flat water rate and sewer base rate inside or outside the city. That would raise approximately $328,359, said Boggus.

Alternative No. 2, is to raise the base water fee $1 and the sewer base $2.50. This would raise about $422,760 in additional revenue.

Alternative No. 3, was to have no water increase but to raise the sewer base $2.50. This would raise about $157,461 more, Boggus said.

Rate history

Sebring's inside the city base charge for its potable water has not increased from $8.14 per since 1996. In 1995, the base meter charge was $7.83.

However, its flow charge rate increased several times from $2.04 per 1,000 gallons in 1996 to $2.30 per 1,000 gallons in 2006.

The outside of city base rate charge increased in 1998 from $10.99 to $11.80.

Its outside city flow rate charge has increased several times from $2.75 per 1,000 gallons in 1997 to its present rate of $3.30 per 1,000 gallons.

Sewer rate comparisons

Sebring sewer customers inside the city are currently at $19.65 and could see as much as $5 more. Outside of city sewer customers pay $24.55 now, and could be looking at $30.81 under the proposed plan.

Ranking from highest to lowest the most expensive sewer rates of those checked by the city were in the city of Oviedo where residents pay a flat $58.90.

Wauchula sewer customers pay $57.67.

Lake Placid sewer customers pay $46.30.

Avon Park sewer customers pay $31.20.

Sun 'n Lake of Sebring and Spring Lake customers pay $18.50.

Water rate comparisons

Inside the city of Sebring water customers ranked No. 10 out of 17, paying $31.14. Outside customers ranked 3rd highest, and pay $44.80.

The highest ranking utility was Placid Utilities in Highway Park, where customers pay $54.10.

Spring Lake customers aren't far behind at $45.45; and at No. 6, Placid Lakes Utilities charges $41.38.

The town of Lake Placid charges its customers $37 inside the town and $45.75 outside of town. Avon Park inside city customers were ranked No. 8 and paid $34.84; outside city customers paid $43.04.

Sun 'n Lake water customers paid $28.80 . In Wauchula, inside city customers ranked No. 17 of 17, and paid $16.90; and outside city customers paid $21.10.