In accordance with the Utility Special District (USD or District) Charter, the USD Board shall adopt by resolution a schedule of rates, fees or other charges for the use of the services, facilities and products of the District to be paid by each customer which may be connected with or provided service by the District. The District may establish separate rates, fees and charges for different portions of the District.
Such rates, fees and charges shall be adopted and revised by the Board so as to provide moneys, which, with other funds available for such purposes, shall be at least sufficient at all times to pay the expenses of operating, managing, expanding, improving and maintaining the District facilities and assets, including renewal and replacement reserves for District facilities, to pay the expenses of the Utility Services Agreement, and to pay the principal and interest on debt obligations as the same shall become due and reserves therefore, and to provide a reasonable margin in this Charter, such rates, fees and charges should always be sufficient to comply fully with any covenants contained in Financing Documents. The District shall charge and collect such rates, fees and charges so adopted and revised, and such rates, fees and charges shall not be subject to the supervision or regulation by any other commission, board, bureau, agency or other political subdivision of the State.
Such rates, fees and charges for the District shall be just and equitable and uniform for the users in the same class and may be based upon or computed upon any factor or combination of factors affecting the use of the services, products or facilities furnished to the customers of the District, as may be determined by the Board from time to time. The rates, fees or charges adopted for any class of customers served shall be extended to cover any additional customers thereafter served which shall fall within the same class, without the necessity of any further hearing or notice.
The rates, fees and charges of the District shall be automatically increased without further action of the USD Board based upon the application of the Florida Public Service Commission utility prices indices, as established from time to time by the Florida Public Service Commission to the then existing rates, fees and charges of the District. Prior to application of this automatic cost escalation provision, the District Executive Director shall submit to the Board at a Board meeting a report detailing the amount of the escalation and the new rates as revised. Unless the Board votes to withhold the automatic cost escalation, the District’s rates, fees, and charges tariff shall be adjusted pursuant to this section as required effective as of the first billing cycle after the Board’s meeting.
On July 26, 2017, the Utility Special District (USD) Board held a joint meeting with the Mayor and Council from the Town of Mangonia Park (Town). The District and the Town are reaching the conclusion of a ten-year utility services agreement entered into in 2008. The Town was seeking rate relief under an extension of the agreement. After a presentation from staff, discussion between the Town and the USD Board and with input from the District's Bond Counsel and Financial Advisor, staff was directed by the Board to initiate a rate study.
On February 5, 2018, the Utility District Board held a joint workshop with Mangonia Park to review the rate study analysis. On the same evening the Utility District Board asked staff to bring back different scenarios to implementing the results of the rate analysis and recommended rates.
On April 16, 2018, representatives from PRMG, the USD rate consultant, made a subsequent presentation providing alternative rate scenarios. The Board, on a unanimous vote, approved a motion to delay the rate study discussion for an additional three months. No further discussions have been held by the USD Board.
Under the same agreement with PRMG (now Raftelis), an updated Revenue Sufficiency Evaluation was performed and submitted to the USD in March 2020. Raftelis provided two alternatives for the Board’s consideration, the first being 6% increases for each of the next five years, the second being one 34% increase in FY2024.