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Utilities director reviews rates, transfers to general fund and multimillion‑dollar CIP; meter replacement proposed
Summary
Utilities Director Hassan Hajimere reported the department serves about 70,000 residents, projects $62 million in revenue for 2027, contributes roughly $9.9 million annually to the general fund, and plans major CIP spending and a meter‑replacement program; commissioners asked for accounting details on depreciation and fund transfers.
Hassan Hajimere, Director of Utilities, told commissioners the Utilities Department provides drinking, wastewater and reclaimed water services across about 17 square miles of Delray Beach and serves roughly 70,000 residents. He said the system averages about 14,000,000 gallons per day of drinking water and that utilities planned operating revenue for 2027 is about $62 million.
Hajimere explained that utilities operate as an enterprise fund and also make regular transfers and contributions to the general fund. "So in any given year, about $9,900,000 of utilities fund is being contributed toward the general fund," he said, adding that those transfers cover general‑fund‑supported administrative and professional services.
He reviewed recent rate adjustments that began in mid‑2023 and said cumulative monthly revenue increases from those adjustments total roughly $910,000. He also described internal efficiency gains and collections efforts that added roughly $500,000 per month in recovered revenue.
On capital spending, Hajimere said the department expects major CIP outlays in the near term: roughly $120 million planned in 2027 and $110 million in 2028 related to the water treatment plant and related system upgrades. He warned that revenue bond debt service will be significant: "within 5 years from now, we have to make about $2,300,000 a month for the payment of that," he said.
Hajimere also raised meter issues: the city plans to replace aging water meters (citing failures and communication problems with the current Badger meters) and expects to begin a competitive procurement by year‑end. He said replacing meters will improve billing accuracy and reduce ongoing manual reading costs.
Commissioners asked for a detailed accounting of depreciation and the formulas used to calculate transfers to the general fund. Hajimere said he has requested that explanation from Finance and staff will follow up by email.
Why it matters: Utilities rates, transfers and bond payments are central to the city’s long‑term fiscal capacity and will influence both utilities customers and general fund budgeting. Commissioners requested Finance backup to verify depreciation accounting and transfer calculations before final decisions.
Next steps: Utilities and Finance will provide the requested accounting detail and the city manager said staff will include utility financial scenarios in upcoming budget materials for the June 9 workshop.
