Hollywood Commission approves Waterworks 2050 plan and steep early rate increases to fund $781M utility overhaul

Hollywood — The City Commission on Thursday approved a multi‑year Waterworks 2050 financing and construction plan that staff said is needed to modernize aging water and wastewater systems, meet new regulatory requirements for PFAS removal and accelerate conversion of septic customers to sewer.

City staff presented a five‑phase construction program and a proposed five‑year rate plan to pay for about $781,000,000 in core water and wastewater projects plus a $45,000,000 program to convert septic systems. City staff said phase 1 construction (2032–2036) would bring roughly 1,459 properties online and that conversion work would average about 900 properties per year after initial build‑out. "We have a plan and it's an actual plan," said Vin, the presentation lead, describing phased work and a queue of more than $100,000,000 in projects already designed and ready to bid.

Under the proposed schedule voters approved, the water rate would rise by roughly 25% year over year for the first three years before leveling to 2.5% in the final two years. Wastewater charges were shown rising about 28.25% annually in the first three years before smaller increases later — a trajectory staff said is driven by front‑loaded construction and the need to qualify for 50% debt financing. Phyllis Shaw, who led the code and billing presentation, said the water CIP includes about $100,000,000 specifically for PFAS compliance required within three years.

The financial impact on households was central to public comment and commission questions. Staff used common billing examples to show the effect: a combined water and sewer household paying about $99 per month today could see that bill climb to roughly $223 per month within five years; a water‑only customer paying $33 today could pay about $68 per month by 2031, staff said.

Residents and commissioners urged changes to reduce disproportionate impacts on large households and lower‑income residents. "I'm worried about building low‑ and moderate‑income areas and then leaving residents to pay for infrastructure for decades," Commissioner Hernandez said, noting potential displacement risk. Commissioner Gruber pressed staff on why properties with recent water main upgrades were placed early in the phasing schedule while other areas with much older mains were deferred.

Staff responded the phasing balanced age of pipes, earlier master‑plan work and commissioner input during prior workshops. "The phasing was derived from the water master plan and feedback from commissioners," the presenter said, adding the city sought to balance multiple infrastructure needs, including stormwater.

The commission approved the water‑rate resolution (item 38) and the sewer‑rate resolution (item 39). The water rate resolution passed 6–1 with Commissioner Gruber recorded in opposition; the sewer rate schedule passed by the same margin. Commissioners and staff said the adopted resolutions will be revisited if new financing opportunities or grants appear.

The presentation and approvals also included changes to utility code and customer protections that staff urged would soften the impact of higher bills in some cases. Phyllis Shaw detailed proposed ordinance changes that would: treat repeated known leaks as separate "leak events" for credit eligibility; offer a one‑time unexplained‑leak credit once every 36 months (no documentation required) up to a two‑month average; reduce the back‑billing lookback from 60 months to 12 months; expand interest‑free payment plans up to 24 months and lower the required down payment from 50% to 10% for qualifying customers.

Shaw said those consumer protections are constrained by an existing bond covenant that limits giving "free service," but staff argued the ordinance would provide more transparent relief options and better notification for estimated or stuck‑meter bills.

The approved actions set the Waterworks 2050 program in motion; staff said they will return with additional rate‑design analyses, potential relief for large families, and updates if federal or state funding opportunities (including WIFIA loans) become available. "We will continue working on ways to make the charges most equitable," Mayor Levy said. The commission set the first‑reading ordinances and related actions in motion and advanced the implementation steps announced by staff.

Ending: The commission approved the resolutions and first‑reading ordinances on the night’s agenda and directed staff to continue outreach, large‑user briefings and exploration of financing options; additional rate and design decisions will return to the commission in future workshops.