Utility Fee Rates Up for City Discussion

New Port Richey’s street lighting and stormwater utilities are operating at a loss. So a consultant is suggesting ways to help the utilities break even for the next five years.  

Yes, folks, those suggestions include fee hikes.

The New Port Richey City Council is discussing the findings at a work session tonight at 6 p.m at City Hall, 5919 Main St, New Port Richey. City Council members cannot vote during work sessions, but they can voice opinion and give direction.

The revenues of streetlighting and stormwater utilities have fallen short of meeting expenses over the past several years.

The city stormwater utility fund budget for the current fiscal year (FY 2012) has a projected operating deficit of $298,060, according to the consultant. The fund's total assessable costs are projected to be $998,000 in FY 2013, according to the consultant.  The five-year average cost is about $1,045,000.

The city’s streetlight utility is projected to have a $68,000 operating loss in the current fiscal year. The consultant projects the streetlight fund will face $375,695 in total assessable costs in the upcoming fiscal year (FY 2013), which begins Oct. 1 2012. The five-year average cost is about $366,000.

The city’s debt-plagued redevelopment fund, which in the past subsidized the general fund, and will require infusions of general fund money to pay what it owes.

An important reason to make the utilities break even is to reduce strains on the city’s general fund, which pays for police, fire rescue, parks and recreation, library and other services. The streetlight utility is part of the general fund.

Governmental Services Group was pledged $23,000 in January

“We’re trying to really implement better business practices,” City Manager John Schneiger said when the studies were proposed.

A public hearing on the fees is also tentatively scheduled for July 17. Here is a summary of the consultant’s suggestion:

Streetlight fees

Fee increase. The city assesses streetlight fees using Equivalent Residential Units, one of which equals 1,860 square feet of property. Currently, the city charges an annual fee of $26.07 for one ERU. The consultant suggests increasing the annual fee for one ERU to $36.14 in FY 2013.

Eliminate tiered street light fee system. The city currently has seven tiers of residential fees and 33 tiers of non-residential fees, which caused consternation when the city proposed a fee hike last year. The consultant suggests eliminating the tier system and charging one rate category for “residential parcels” and another for “general parcels.”  

All residential parcels would be charged one ERU per dwelling unit. Residential parcels would include single-family homes, mobile home parcels, mobile homes located in a licensed mobile home park and condominiums parcels.

General parcels would include any other type of property, including multi-family homes.

According to the consultant, these would be charged “based on an assignment of ERUs. Compute the sum of all buildings on a general parcel and assign the number of ERUs by dividing the total building square footage by the ERU value of 1,860.”

Stormwater Fees

Fee increase: The city also assesses stormwater fees using Equivalent Residential Units. In the case of stormwater fees, one ERU equals 2,629 square feet of impervious space.

Currently, the city charges an annual fee of $40.327 for one ERU. The consultant suggests raising the annual fee for one ERU to $77.36 in FY 2013.