Coconut Creek amends method for annual water-rate adjustments; commission clears ordinance to allow pass-through of Broward County increases

The Coconut Creek City Commission voted on first reading to amend the city code governing annual automatic adjustments to water and wastewater rates, adding Broward County’s water and wastewater fee adjustments as a possible trigger for the city’s automatic change and moving the adjustment date from April 1 to June 1.

Under the ordinance (2025-007) introduced at the meeting, the city’s annual adjustment would apply the greater of: 2.5 percent, the consumer price index (Miami–Fort Lauderdale), or Broward County’s average annual water and wastewater rate increase for the prior fiscal year. The ordinance language preserves the commission’s existing authority to waive the automatic adjustment in whole or in part.

Why the change: Finance staff and the city’s auditors told commissioners that costs passed through by Broward County for transmission and treatment now represent a large portion of the city utility fund’s operating expenses. At the meeting finance staff cited several cost increases at the county level, including higher sludge disposal costs, electricity and chemicals, and explained that larger county increases can render CPI-based increases insufficient to maintain fund stability.

Audit partner Stephen Emery and Finance Director Peter Gay (presented as Peter Gail Lake) told the commission the city closed fiscal year 2024 in a strong position with about $36.3 million in unassigned general-fund balance (roughly five months of operating expenses), but staff cautioned the utility enterprise fund is subject to cost pressures and that the utility operates as a self-sustaining enterprise fund requiring rate adjustments to cover costs.

Commission debate: Commissioner Riedell pressed for a larger increase this year and said he would support passing through Broward County’s 9 percent increase when the city adopts the final rate by resolution. Riedell said earlier figures discussed at the budget workshop would leave the utility fund exposed to multimillion-dollar deficits in coming years and argued the 9 percent pass-through would avoid a significant shortfall. Other commissioners expressed concern about rate impacts on residents but acknowledged that failing to account for Broward County’s increases could create deficits that the city would need to cover.

City Manager Rose and the city attorney clarified the process: the ordinance adopted tonight provides the formula and authority to use the county’s rate as the cap, while the actual rate for any year is set later by resolution that the commission adopts annually. The first-reading vote approved the ordinance language; a second reading and resolution with a specific numerical rate will follow.

Public outreach: Finance staff described a customer outreach plan that will include automated calls, website and social-media updates, direct notifications to multifamily management companies and other materials. Staff also said they would consider text-message notifications if the commission requests it.

What was decided: Commissioners voted to move the ordinance forward (first reading passed by roll call). The exact percentage to be applied for the coming fiscal year will be set later by resolution; commissioners indicated they expect to consider a resolution that could apply a Broward County pass-through percentage (discussed at the meeting as 9 percent) when the formal rate resolution returns.

Excerpts: “We’re proposing changes to the rate adjustment formula,” the finance presenter said, “updating the formula to apply the greater of 2.5%, the CPI or the actual average annual rate increase from Broward County for the prior fiscal year.” Commissioner Riedell said he planned to support the higher county pass-through this year to avoid future deficits. (Transcript excerpt: ordinance 2025-007 presentation and commission discussion.)