Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Rates topic
No spam. Unsubscribe anytime.
State bill to eliminate outside-user surcharge could force Punta Gorda to spread $1.3M shortfall across customers, staff says
Summary
City staff told the Utilities Advisory Board that a recently passed—but not yet signed—state bill would eliminate the municipal option to charge up to a 25% surcharge for customers outside city limits; staff estimated roughly $1.3 million would need to be reallocated in the city’s rate study if the change becomes law.
City staff told the Punta Gorda Utilities Advisory Board on May 19 that a legislative change under consideration would remove the city’s ability to levy an up-to-25% surcharge on utility customers served outside city limits, and that the change would require rebalancing rates inside the city.
Staff said the city currently charges a 10% municipal utility tax on inside-city customers and uses an additional surcharge on outside-city accounts to recover costs for serving users beyond city limits. According to staff, a bill passed this year would eliminate the 25% outside-user surcharge; the bill had been passed but not yet signed at the time of the meeting. Staff estimated approximately $1,300,000 would have to be redistributed across other customer classes if the surcharge is removed.
Why it matters: removing the surcharge would change the distribution of rate-related revenue and could raise rates for inside-city customers unless alternative funding or rate design changes are adopted. Staff said the change is being considered while the city is finalizing a utility rate study.
Operational context: Finance Director Kristen Simeon presented the monthly operations report showing year-to-date water revenue at about $14.7 million and departmental operating expenses at approximately 93% of budget. She told the board that encumbrances and a recently received SRF loan payment influenced fund transfers, and that staff will continue work with rate consultants to model any legislative impacts.
Discussion vs. decision: board discussion focused on implications for budgeting and the rate study; no board vote or ordinance was recorded. Staff directed that the rate study account for the potential legislative change and report back with modeled rate scenarios.
