Hialeah warns countywholesale wastewater hike will push utility costs higher; council approves fee relief and credits policy

HIALEAH, Fla. — City officials warned Tuesday that a proposed 19% wholesale wastewater rate increase by Miami-Dade County would sharply raise Hialeah—s utility costs and leave the city facing a budget gap unless officials act.

Kevin Linsky, Hialeah—s director of public works, told the City Council his department—s analysis shows roughly 70% of the utility department—s operating costs are payments the city makes to the county to treat wastewater and provide wholesale water. Linsky said the county—s planned 19% increase for wholesale wastewater this fiscal year would, by itself, raise Hialeah—s total utility costs by roughly 11 percentage points.

"The wholesale customer for wastewater, like Hialeah, will go up 19%. That—s an amazing increase," Linsky said during a presentation on the city—s public-works budget and water system. "It—s almost mathematically impossible because they have to buy their own services. ... I did find things I can—t explain, and it would be better for a forensic accountant to go in and explain these things to me."

Why it matters

Linsky told council members the county—s audited financial statements show retail revenues have risen far less than revenues the county reports it receives from wholesale customers over recent years. He said the discrepancy suggests cost-shifting between the county—s internal retail and wholesale accounts but that city staff could not determine whether the difference represented accounting…