City of Groveland Minutes City Council Workshop Friday, June 21, 2024  The Groveland City Council held a workshop on Friday, June 21,2024 in the E.L. Puryear Building located at 243 S. Lake Avenue, Groveland, FL 34736. Mayor Evelyn Wilson called the meeting to order at 12:32 p.m. with the following members present: Vice Mayor Mike Radzik, Council Members Barbara Gaines, Richard Skyzinski, and Dina Sweatt. City officials present were Acting City Manager Tim Maslow, City Clerk Virginia Wright, and sergeant-At-Arms Corporal Hunter NOTE: Vice Mayor Radzik arrived at 12:45 p.m. City Manager Mike Hein had an excused As an alternate option, the public was provided the opportunity to attend the June 21, 2024 City Council Workshop virtually in listen/watch mode only. A public notice with instructions to participate was posted to the City's website under "public notices" at www.royeland-f.gov, and  Stellinga and City Attorney Anita Geraci-Carver.  absence.  int the display board at City Hall.  AGENDA  1. Utility Rates & Impact Fee Study  Transportation and Public Works Director T.J. Fish reported the workshop was to provide information on the culmination of work over the last seven (7) months between the Transportation & Public Works Department, Utilities, Finance, and Utility Bill departments; as well as Raftelis, the City's financial consultant representatives and our partners, Woodard & Curran. Mr. Fish introduced Joe Williams, Senior Manager of Raftelis. Mr. Williams provided Justin DeMello, Vice President of Woodard & Curran provided a presentation as attached to  an overview of the study.  these minutes as Attachment 1, pages 2 through 6, as follows:  Agenda  1. Brief History 2. Key Forecast Assumptions 3. CIP Funding Plan 4. Revenue Sufficiency Forecast 5. Rate Design 6. Findings and Recommendations  Groveland Utilities - A Recent History 2018 - Present  2018 - New City Manager 2019 - A New Approach 2020 - Utility Master Planning Begins  2021 - Completion of Facilities Plans of Existing Needs  2022 - Completion of the Utility Master Plan (UMP) and Commencement of Design of    JUNE 21, 2024 CITY COUNCIL WORKSHOP MINUTES  Capital Projects  2023 = Completion of Design Phase of Capital Projects/Raftelis Funding Study  2024 = Transition into Construction Phase - Funding Pending  Identified 5-Year Capital Needs Summary  Leverage. Success  Low Interest SRF Loans Grants Secured Future Grants Pending  SRF Loans  Mr. DeMello reported he would assist the City in securing grants.  Strategy & Next Steps to Execute  Joe Williams with the Raftelis Consulting Group provided a PowerPoint presentation as attached  to these minutes as Attachment 1, Page 7 through 40, as follows:  Key Forecast Assumptions and Notes  Utility Connection/mpact Fee Objectives  CIP Funding  CIP Summary - Major Projects  Villa City Water Plant- $27,575,800 Villa City WWTP-$ $71,073,300 Sampey WWTP Improvements-s $52,698,300  CIP Funding Summary New Loans for CIP  Water and Sewer Revenue Sufficiency Forecast Existing Water Rates (October 1, 2020) Existing Irrigation & Reclaimed Rates (October 1, 2020) Existing Sewer Rates (October 1, 2020) Projected New Development Revenue Sufficiency at Existing Rates Calculated Connection Fees Forecast Rate Adjustment Alternatives Revenue Sufficiency at Proposed Rates Utility Reserve Forecast  2    JUNE 21, 2024 CITY COUNCIL WORKSHOP MINUTES  Rate Design  Pricing Objectives Proposed 2025 Rates = Water Proposed 2025 Rates = Sewer Proposed 2025 Rates = Irrigation Residential Bill Distribution Rate Design Impacts - Base Charges Rate Design Impacts - 2,000 Gallons Rate Design Impacts - 4,000 Gallons Rate Design Impacts - 20,000 Gallons Local Comparison = Connection Fees  Local Utility Bill Comparison at 4,000 Gallons Consumption  Conclusions  The connection fees should be adopted as calculated. They reflect the current cost of infrastructure for new development. This will minimize the burden on existing customers. Rate adjustments - discuss general direction (1 of 4 alternatives) for implementing rate The alternate rate design should be adopted to promote conservation and minimize Due to the magnitude of the CIP and the sensitivity of rate adjustments, the City should  adjustments.  impacts to low use customers  consider updating the forecast each year for the next 2-3 3 years.  Next Steps and Follow Up  General consensus of rate adjustment alternative Future Meeting Dates (have already been notice to customers) July 1, 2024 - Connection Fees 1st Reading July 15, 2024- Connection Fees 2nd Reading July 29, 2024 - Utility Rates 1st Reading August 12, 2024- Utility Rates 2nd Reading  Vice Mayor Radzik requested that Mr. Maslow substantiate the projected annual units of six hundred and forty-three (643) prior to having an ordinance. Mr. Maslow stated he would work Vice Mayor Radzik asked for clarification on how the City would reconcile conservation demand management with homeowner associations that penalize homeowners for not having green lawns. Mr. Williams stated educational programs on how to efficiently water lawns may help. Mr. Fish reported a deep granular look was taken on the customer base and it has been identified how the customer base would be impacted. For some of the oldern neighborhoods that do not have access to reclaimed water, will need to know they would be responsible for sewer charges on the  with Finance Director Jo-Anne Drury.  3    JUNE 21, 2024 CITY COUNCIL WORKSHOP MINUTES  water until they paid for a second meter. The City would be messaging those consumers with the option of a one-time investment to save long-term. Mr. Fish reported reclaim water is not free and is not cheap. He noted the City does need to charge what it costs to treat reclaim water. Vice Mayor Radzik inquired when the next water impact fee increase could be. Mr. Williams acknowledged there may be some legal implications. However, typically rates could be increased Vice Mayor Radzik asked City Attorney Geraci-Carver if impact fees needed to be equal across treatment plants. City Attorney Geraci-Carver reported she had not seen the draft study and did not know howi it was calculated. However, it seemed to be based on the entire City. Mr. Williams Mr. Williams concluded his presentation by recommending Council adopt the service fees as calculated in Alternative 1 to maximize the ability to recover equitable amounts from new Vice Mayor Radzik stated the City had the opportunity to automatically raise rates by three percent (3%) via ordinance. In recognition of the hardships residents faced, the City opted not to during the pandemic. It equated to an approximate seven to nine percent (7% - 9%) loss of revenue that Mr. Fish asked ift there were any additional questions. He noted staff was not requesting a vote or official consensus at this time. However, the increase would be critical moving forward and for Mr. Fish reported there are upcoming City Council Special Meetings scheduled for July 29th for the first reading of the ordinance, and August 12th for the second reading of the ordinance. Council Member Gaines stated she appreciated City manager Hein's vision to perform the utility rate study in 2018. She asked when the last time rates were raised prior to this date. Mr. Fish reported sewer rates were changed in 2012 and water rates were increased in 2002. Council Member Gaines asked ifit was true that sixty percent (60%) of the City's population used approximately four thousand (4000)gallons each month. Mr. Williams stated four thousand (4000) gallons or less. Council Member Gaines inquired if there was a known average on sewer. Mr. Williams stated it would be more challenging to determine an average for sewer. Council Member Gaines inquired as to why residents should care that developers have to pay a higher impact fee now. Mr. Williams stated the increased fee would have an indirect impact to current residents by helping to keep their utility rates relatively lower than it would be otherwise. Council Member Gaines asked what residents stand to lose if the ordinances are not approved today. Mr. Williams reported the numbers would have to be reworked and likely increased. Mr. Fish added the most immediate consequence would be having to figure out how to address a wastewater plant that the Department of Environmental Protection (DEP) was looking into due to  whenever a real need was identified to update the study.  added there could be designated service areas.  developments and reduce burdens on existing customers.  the City is now trying to recoup.  this current fiscal year.  itb being at ninety percent (90%) capacity.  4    JUNE 21, 2024 CITY COUNCIL WORKSHOP MINUTES  Council Member Gaines stressed how important it is to educate the public on what was happening. Not just that the rates would be raised. She stated to talk to the public one ononeand tell them why so that the public understands, via social media, and other avenues. Mr. Fish stated Mayor Wilson stated the Communications Department noticed this workshop today on social media. Sarah Panko, Deputy Communications Director reported there would be a Strategic Plan Open House on June 26th at the Lake David Center. There would be two (2) sessions held, 11:30 a.m. and again at 5:30 p.m. Stations would be set up SO the public can discuss with staff. Ms. Panko also reported that Deputy Finance Director Joe Romano would be in attendance to answer questions residents may have regarding their utility bill. Mr. Romano would be able to access resident's bills up and print out a copy for anyone who would like the information. Vice Mayor Radzik felt education would be great for residents. However, he stated there would still be those who would be against rate increases no matter how much they were educated. Vice Mayor Radzik stated he agreed with Alternative 1 as presented. Council Member Sweatt Council Member Sweatt asked how long the Sampey Wastewater Treatment Plant (WWTP) had been in service. Mr. Fish replied the Sampey WWTP has been there for twenty-three (23) years. Council Member Sweatt inquired as to how much growth was required to be able to update the treatment plants as needed. Mr. Fish stated the Sampey WWTP just needed to be modernized. Council Member Sweatt inquired how long does a wastewater treatment plant last. Mr. Fish stated forty to fifty years (40-50). Council Member Sweatt asked what would happen if we experienced a lotr more growth; would the plants require another upgrade. Mr. Fish stated the Villa City WWTP would be designed for six to eight (6-8) million capacity. He noted one plant was old but expandable. The Sampey WWTP is not expandable due to being located next to wetlands. Council Member Skyzinski stated the water and sewer impact fee is approximately six thousand eight hundred dollars ($6,800). He asked what the other impact fees being collected were, and for how much. Finance Director Jo-Anne Drury reported the City collects four (4) other impact fees. They include an administration impact fee for one hundred and twenty-seven dollars ($127); Park impact fees for one thousand and six hundred dollars ($1,600); Police impact fees for six hundred and sixteen dollars ($616); and Fire impact fees for five hundred and forty-one dollars ($541). This is a total of sixteen thousand, eight hundred and fifty-five dollars ($16,855), perh home with the proposed new impact fees. Currently, the total is approximately nine thousand, seven Council Member Skyzinski asked if we should concern ourselves with increasing the other impact fees to a point where we give developers reason to pause and consideri if theywant to do business here. Mr. Maslow stated he has seen a reduction of approximately half of the peak due the increase in interest rates. Instead of fifty (50) new homes each month, there is approximately twenty-five (25). Mr. Maslow stated he has not seen any slowdown as a direct result of impact fee  this was why the Communications team is here today.  also agreed with Alternative 1 as presented.  Itwas upgraded once in 2007.  hundred and fifty dollars ($9,750).  increase.  5    JUNE 21, 2024 CITY COUNCIL WORKSHOP MINUTES  Council Member Skyzinski stated he supports Alternative 1 as presented.  Council Member Gaines asked if the workshop if to just have an understanding of the presented Mayor Wilson thanked everyone for the presentation. She felt staff should apply for the loans, SO  options. Mr. Fish stated there is no vote today on this item.  the City does not lose the rates.  Mayor Wilson stated she agreed with Alternative 1 as presented.  Mr. Fish reported the workshop was advertised and the presentation was published on the City's  website.  Mr. Maslow encouraged the public to attend the upcoming open house.  ADJOURNMENT  Mayor Wilson adjourned the workshop at 1:56 p.m.  Groveland FLORIDA City with NaturalCharm  Galya aloon R  Wilson, Mayon  Attest:  Virginia-Wright, City Clerk  6    City of Groveland  Utility Rate and Connection Fee Study  June 21, 2024  RAFTELIS    Agenda  1. Brief History  2. Key Forecast Assumptions 3. CIP Funding Plan  4. Revenue Sufficiency Forecast  5. Rate Design  6. Findings and Recommendation:    Groveland Utilities - A Recent History 2018-Present  2018 - New City Manager 2019 - A New Approach  2020 - Utility Master Planning Begins  2021 - Completion of Facilities Plans of Existing Needs  2022 - Completion of the Utility Master Plan (UMP) and Commencement of  Design of Capital Projects  2023 - Completion of Design Phase of Capital Projects / Raftelis Funding Stu  2024 - Transition into Construction Phase - FUNDING PENDING  vpana Curran  3    Identified 5-Year Capital Needs Summary  Summary System Revenues Water Impact Fees Sewer Impact Fees Grant  Budget $5,775,948 $20,404,805 $33,820,491 $10,473,379 $525,280 $177,000 $4,950,000 $131,827,061 $2,000,000 $3,620,465 $45,564,018 259,138,447  Percent of Total 2.2% 7.8% 13% 4% 0.2% 0.1% 1.9% 51% 0.8% 1.4% 17.5%  Grant (SRF Principal Forgiveness)  Capital Lease Mascotte SRF Loan (Pending Council Action) Bank Loan 2023 Bank Loan New SAHFI Grant Total 4  Woodard Curran    Leverage. Success! Low Interest SRF Loans Villa City Drinking Water Villa City Drinking Water Villa City Drinking Water Lead Service Line Replacement Stormwater Wastewater Pre-Construction (Sunshine & Sampey) Wastewater (Sunshine & Sampey) Wastewater Planning (things outside of original Planning plan)  Planning and Design Phase 1 &2 Phase 1 Construction (AMR & Asbestos Line Replacement) Phase 2 Construction Production/TreatmentDistribution) Planning and Design Planning Planning and Design Construction  DW350620 DW350621 DW350621 LS35064 SW35063 WW350612 WW35061 WW35065  1.50% $3,071,200.00 2.35% $8,310,100.00 1.42% $24,893,836.00 0.00% $265,200.00 0.54% $300,000.00 0.06% $1,964,079.00 0.54% $38,260,302.00 1.79% $201,300.00 Total $77,266,017.00  Grants Secured Lead Service Line Replacement Groveland LFA Wells at Villa City Sunshine/Sampey Sunshine/Sampey, Regional WWTP Vulnerability Assessment Sampey WWTF Lower Floridan Reclaim Well at Sunshine Crystal Lake Waterside Pointe Stormwater Improvements  PamingDesgnLCRR) Construction Sunshine Planning Design Planning/Design- Regional WWTP Planning Construction Construction- Sunshine Construction- Crystal Lake PamangDesonComsinucion  LS35064 $254,800 36640-SJRWMD: $2,251,240 WW350610 $260,800 WW350612 $1,891,707 LPA0298-WW $750,000 23PLN20-V.A. $150,000 WG121-WW $6,500,000 36638-SJRWMD $1,104,112 36995-SJRWMD $87,500 LPA0297-SW $950,000  Total $14,200,159 Total Funding: $137,0  Future Grants Pending GROVELAND  DW WW SW Total  $25,740,000 $25,740,000 $26,985,000 $16,513,000 $24,370,000 $77,095,000  Woodard Curran  5  $3,310,000 $45,563,000    SRF Loans  Securing the SRF Loans > - City does not currently qualify for borrowing Rate and Impact Fee adjustment  Subject: FW: Groveland' WW350613- -Treatment and' Transmission  Good afternoon,  Ijust wanted tof follow up on my previous emailr regarding thet financials. Itc does not appear affordt this loan. Have there been any ratei increases implemented recently that we are unawar  provide any resolutionsforinances. Thank you,  is  Scott McArthur Government Operations ConsultantI Division of Water Restoration Assistance State Revolving Fund Program Satccmathenaptrant Office: 850-245-2998  required  Failure to secure the SRF loans will put allof these critical construction projects  in jeopardy.  Wpodard Curran  6    Strategy & Next Steps to Execute  Next Steps  Growth will pay for Growth Staff moving forward with examining financial mechanisms and ways to complete projects on time under State requirements Secure FDEP SRF Loan Awarded: Nov. 2023  ONe BITE a II  - Awaiting Rate Sufficiency Secure FDEP SRF Loan: August 2024 Execute Critical Construction Contracts  Continue to Leverage Local, State and Federal Alternative Financing (Grants!)  7  Woodard Curran    2024 Budget  Escalation Factors for: -Labor General Inflation Electricity  Health Insurance Fuel  Key Forecast Assumptions and Notes  Forecast remaining 5 years Chemicals  Significant upgrade and investment to existing facilities (inc. Sampey Plant) along with capacity expansions for  AI  new development  Issuance of new debt to fund plant upgrades and other improvements (for existing and new customers)  -  Rate and connection fee adjustments identified to fund CIP investments and an increased level of service    Utility Connection/Impact Fee Objectives  Connection/mpact Fees, are charged by a Utility to fund expansion  of the system to meet future capacity demands  Growth paying for growth  Generally, one-time" charges for a new service location  Update the Connection Fees to reflect the current infrastructure  costs (water, wastewater, and reclaimed water)  Currently making large investments to upgrade existing facilities and plannin  for new capacity  Development of a proposed Connection Fee Compare Connection Fees with other utilities  9    CIP Funding Plan  10    CIP Summary - Major Projects  Villa City Water Plant, 927,575,800  Sampey WWTP Improvements, $52,698,300  Major Projects Include:  Villa City Water Plant - $27,575,800 Villa City WWIP-571,073.300  Sampey WWTP improvements - $52,698,300  Villa City WWTP, $71,073,300    CIP Funding Summary  Funding Source Operating  2024 $558,000 990,800 7,264,600 54,667,700 4,950,000  2025  2026  2027  2028  Total  $596,900 $1,261,000 $1,541,500 $1,604,800 $5,562,200  Water Connection Fees Sewer Connection Fees Grants Mascotte Grant Developer Existing Debt Proposed Debt Total  643,300 1,461,400 809,200 U 6,662,500 0  1,416,200 2,600,400 572,100 0 6,829,100 0  3,016,300 2,687,500 604,100 0  2,489,000  8,555,600  783,300 14,797,200 0 56,653,100 0 4,950,000  0 12,374,300 91,917,000  6,999,800 14,219,900 34,711,300  0  0 12,374,300 2,914,100 127,277,900  4,540,000 15,079,100 12,827,700  $172,722,400, $14,713,300 $27,757,900 $27,676,900 $22,011,100 $264,881,600    New Loans for CIP  Loan  Projects  Funding Amount $668,700 $261,400 $1,050,800 $205,000 $41,248,300 $3,711,200 $12,158,400  Annual Debt Service $76,600 $16,500 $119,300 $23,300 $2,623,000 $421,400 $754,200  First Payment  2024 SRF W -1 Lead service lines 2024 SRF W-2 Lead service lines  2025 2025 2025 2025 2027 2025 2027  2025: S.Design 2025 W Design  Facilities Plan & 1&1 Facilities Plan  2025 Sampey SRF Sampey Upgrade  2025 Bank Loan 2026 CW SRF  Various projects Ribs/Lift Stations/etc.  2026 Villa City SRF Villa City WWTP 2026 W SRF -1 AC Mains replace 2026 W SRF -2 Various projects  $50,000,000 $5,557,100 $12,417,000 $20,000,000  $3,148,300 $364,200 $824,100 $900,000  2028 2027 2028 2025  Line of Credit  Various projects    Water and Sewer Revenue  Sufficiency Forecast  14    Existing Water Rates (October 1, 2020)  Monthly Base Charge Inside Rate  Volumetric Charge  Inside Rate  Residential  $17.80 23.59 $11.80 29.49 58.98 94.36 188.80 295.00 590.00  Residential  Residential 2 Homes on 1 Meter Commercial 34-Inch 1-Inch, 1%-Inch 2-Inch 3-Inch 4-Inch. 6-Inch  Minimum Gal 4,000 (Inc. in Base) AllUsageAbove 4,000Gal Commercial All Consumption.  $0.00 3.09 $4.12  15    Existing Irrigation & Reclaimed Rates  (October 1, 2020)  Monthly Base Charge Inside Rate  Volumetric Charge Inside Rate  34-Inch 1-Inch 1/-Inch 2-Inch 3-Inch  $2.78 6.95 13.89 22.22 44.43  Block 1 Block 2 Block 3 Block 4 Block 5  $2.73 3.09 3.39 4.05 4.92:  Description Block 1 Range Block 2 Range Block 3 Range Block 4 Range Block 5 Range  34-Inch 1-Inch 1%-Inch 2-Inch 3-Inch  0-6,000 0-6,000 0-15,000 0-15,000 0-30,000  6,001-1 16,000 6,001 -1 16,000 15,001-40,000  16,001 -30,000 30,001-50,000. 16,001-30,000 30,001-50,000  Above 50,000 Above 50,000  15,001-40,000 40,001-75,000 75,001-125,000 Above 125,000 30,001-80,000 80,001-150,000 150,001-2 250,000 Above 250,000  40,001-75,000 75,001-1 125,000 Above 125,000  16    Existing Sewer Rates (October 1, 2020)  Monthly Base Charge Residential Residential 2 Homes on 1 Meter Commerdial 34-Inch 1-Inch: 1 %-Inch 2-Inch 3-Inch 4-Inch 6-Inch  Inside Rate $29.92 59.84 $29.92 74.84 149.67 239.49 478.75 748.05 1,496.11  Volumetric Charge  Inside Rate  Residential  Minimum Gal 4,000 (Inc. in Base) NIVSgeAboespOSa Commercial All Consumption:  $0.00 2:31 $2.31  17    Projected New Development  Study relies on a conservative forecast of around 3,200 units  over the 5-year forecast  Description Units per Year Cumulative  FY2024 FY2025 171 171  FY2026 993 1,807  FY2027 FY2028 739 2,546  643 814  643 3,189  Connection fee revenue is aligned with when units are added    Revenue  $25,000,000  Sufficiency at Existing Rates  $20,000,000  Revenues are not projected to be sufficient beginning in FY 2025 Significant debt service added  $15,000,000  $10,000,000  Additional 0&M to support new/upgraded plants and increase the LOS Rate adjustments necessary to fund 0&M, debt, debt covenants, capital, and maintain reserves  $5,000,000  $0  2024 Operating Expenses Other Expenses /Transfers  2025  2026 Debt Service Revenues From Existing Rates  2027  2028  19    Calculated Connection Fees  Calculated Fee $3,830 10,090 $13,920  Fiscal Year Existing Fee  $Change  % Change  Water Sewer Total  $2,337 4,478 $6,815  $1,493 5,612 $7,105  63.9% 125.3% 104.3%  20    Forecast Rate Adjustment Alternatives  Alternate 1: Fiscal Year FY2025 FY2026 FY2027 FY2028  Alternate 2: Fiscal Year FY2025 FY2026 FY:2027 FY2028  Rate Adjustment Effective Date  Rate Adjustment Effective  40.0% 10.0% 10.0% 10.0%  October 2024 October 2025 October 2026. October 2027  30.0% 15.0% 12.5% 12.5%  October 2024 October 2025 October 2026 October 2027  Alternate 3: Fiscal Year FY2025 FY2026 FY2027 FY2028  Alternate 4: Fiscal Year FY2025 FY2026 FY2027 FY2028  Rate Adjustment Effective Date  Rate Adjustment Effective Date  45.0% 10.0% 10,0% 10.0%  January 2025 January 2026 January 2027 January 2028  35.0% 20.0% 12.0% 10.0%  January 2025 January 2026 January 2027 January 2028  Note: Rates in future years include inflationary adjustments  21    $25,000,000  Revenue  Sufficiency at Proposed Rates Rate phasing is balanced with immediate needs for revenue sufficiency, coverage, and fund balance needs  $20,000,000  $15,000,000  $10,000,000  $5,000,000  $0  2024 Operating Expenses Other Expenses /Transfers Revenues From Proposed Rates  2025  2026 Debt Service Revenues From Existing Rates  2027  20  22    Utllity Reserve Forecast  $25,000,000  $20,000,000  The City has adopted a 20% reserve policy including 0&M and debt service requirements Maintaining strong Connection Fee balances isr necessary since connection fees are being used to pay debt service  $15,000,000  $10,000,000  $5,000,000  $0  FY2024 FY2025 FY2026 FY2027 FY202  Operations Fund (400) Operating Fund Target  Water Connection Fee Fund (401)  Sewer Connection Fee Fund (402) Capital Fund (403)  23    Rate Design  24    Pricing Objectives  Enhance Affordability for lowest users  Reduction of monthly minimum / base charge Conservation / demand management Introducing tiered rates for water service  Revenue Stability  Maintain strong revenue levels from base charge and low usage tiers Rate design achieves fixed revenue recovery of 30% water and 45%  sewer    Proposed 2025 Rates - Water  Base Charges  Existing Rate Structure [2] $17.11 $34.21  Rate Design [3] $10.40 20.78  Description [1]  Residential:  Residential - 2 Homes 1 Meter Commercial 34-Inch 1-Inch 11 2-Inch 2-Inch 3-Inch 4-Inch 6-Inch  $17.11 42.76 85.52 136.82 273.76 427.75 855.50  $10.40 25.98 51.97 83.14 166.34 259.91 519.83  [1JExisting rate structure includes the 45% rate increase for FY 2025. Rate design is shown to produce the same amount of total water revenues. [2] Includes the first 4,000 gallons of water consumption. [3] Includes 0 gallons of water consumption.  26    Proposed 2025 Rates - Water, cont.  Residential Usage Rates:  Existing Rate Structure [2] $0.00 4.48 4.48 4.48  Rate Design [3] $1.68 3.38 3.93 6.74  Description [11 Block 1(0-4,000) Block 2 (4,001 -8,000) Block 3 (8,001 - 12,000) Block 4 (Above 12,000) Commercial Usage Rates:  Existing Rate Design Rate Structure [2] $5,97  Description [1]  [3] $6.18  AIl Usage  [1] Existing rate structure includes the 45% rate increase for FY 2025. Rate design is shown to produce the same amount of total water revenues. [2] Includes the first 4,000 gallons of water consumption in base charge. [3] Includes 0 gallons of water consumption in base charge.  27    Proposed 2025 Rates - Sewer  Base Charges  Description [1]  Existing Rate Design Rates [2] $43.38 86.77  [3] $24.20 48.40  Residentiak  Residential - 2 Homes 1 Meter Commercial: 34-Inch 1-Inch 11 %2-Inch 2-Inch 3-Inch 4-Inch  $43.38 108.52 217.02 347.26 694.19 1,084.67  $24.20 60.53 121.06 193.71 387.23 605.05  [1]E Existing rate structure includes the 45% rate increase for FY 2025. Rate design is shown to produce the same amount of total sewer revenues. [2] Includes the first 4,000 gallons of sewer consumption in the base charge. [3] Includes 0 gallons of sewer consumption in the base charge.  28    Proposed 2025 Rates - Sewer, cont.  Residential Usage Rates:  Existing Rate Structure [2] $0.00 3.35 3.35  Rate Design [3] $5.44 5.44 6.80  Description [1] Block 1(0 4,000) Block 2 (4,001 - 8,000) Block 3 (Above 8,000) Commercial Usage Rates:  Existing Rate Structure [2] $3.35  Rate Design [3] $6.53  Description [1  AUsage  [1JE Existing rate structure includes the 45% rate increase for FY 2025. Rate design is shown to produce the same amount of total sewer revenues. [2] Includes the first 4,000 gallons of sewer consumption in the base charge. [3] Includes 0 gallons of sewer consumption in the base charge.  29    Proposed 2025 Rates - Irrigation  Base Charges  Existing Rate Structure [1]  Description  Rate Design  Meter Size 34-Inch 1-Inch 11 %-Inch 2-Inch 3-Inch  $4.03 10.08 20.14 32.22 64.42  $5.21 12.99 26.00 41.59 83.17  [1] Existing rate structure includes the 45% rate increase for FY 2025. Rate design is shown to produce the same amount of total irrigation revenues.  30    Proposed 2025 Rates = Irrigation, cont.  Usage Rates:  Existing Rate Structure $3.96 4.48 4.92 5.87 7.13  Usage Block [1]  Rate Design  Block 1 Block 2 Block 3 Block 4 Block 5  $3.71 4.32 7.42 9.56 11.80  [1] Existing rate structure includes the 45% rate increase for FY 2025. Rate design is shown to produce the same amount of total irrigation  revenues.  Meter Size Block 1 Range Block 2 Range Block 3 Range Block 4 Range Block 5 Range  34-Inch 1-Inch 1%-Inch 2-Inch 3-Inch  0-6,000 0-6,000 0-15,000 0-15,000 0-30,000  6,001 1 16,000 6,001-1 16,000  16,001- -30,000 30,001- -50,000 16,001-30,000 30,001-5 50,000  Above 50,000 Above 50,000  15,001-40,000, 40,001-7 75,000 75,001 1 125,000 Above1 125,000. 15,001-40,000 40,001-75,000 75,001-125,000 Above 125,000 30,001-80,000 80,001-1 150,000 150,001- -2 250,000 Above. 250,000  31    Residential Bill Distribution  Monthly Usage Range % of Residential Bills  Cumulative %  OGallons 1-1,000 Gallons 1,001 2,000 Gallons 2,001 - 3,000 Gallons 3,001 4,000 Gallons 4,001 = 5,000 Gallons 5,001 - 6,000 Gallons 6,001 = 7,000 Gallons 7,001 - 8,000 Gallons 8,001 = 9,000 Gallons Above 9,000 Gallons  8.3% 8.4% 14.2% 15.8% 13.8% 10.8% 7.8% 5.4% 3.7% 2.7% 9.2%  8.3% 16.7% 30.9% 46.7% 60.5% 71.2% 79.1% 84.4% 88.1% 90.8% 100,0%    Rate Design Impacts = Base Charges  $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00  $46.05  $41.86  $41.72  $38.06  $34.60  FY2024  FY2025  FY2026  FY2027  FY2028    Rate Design Impacts = 2,000 Galllons  $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00  $65.01  $59.10  $53.72  $48.84  $41.72  FY2024  FY2025  FY2026  FY2027  FY2028    Rate Design Impacts = 4,000 Gallons  $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00  $83.97  $76.34  $69.38  $63.08  $41.72  FY2024  FY2025  FY2026  FY2027  FY2028    Rate Design Impacts = 20,000 Galllons  $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $50.00 $0.00  $332.21  $301.98  $274.50  $249.60  $128.12  FY2024  FY2025  FY2026  FY2027  FY2028    Local Utility Bill Comparison at 4,000  Galllons Consumption  Mascotte Town of Lady Lake Fruitland Park Mount Dora City of Umatilla Town of Oakland City of Tavares City of Eustis Montverde City of Ocoee Proposed Rates Orange County City of Leesburg City of Apopka City of Clermont Existing Rates City of Minneola City of Winter Garden Howey-in-the-Hlls  $106.971  $84.701 $79.701 $77.841 $75.351 $71.461 $66.541 $66.301 $64.731 $64.011 $63.081 $51.311 $50.981 $47.911 $46.771 $41.721 $40.941 $33.011 $31.361 $20.00  Other Utilities Average: $62.35  $0.00  $40.00  $60.00  $80.00  $100.00  $120.00  Water Sewer  37    Local Comparison - Connection Fees  Proposed Rates Groveland FY25  $13,9201  Collier County Lake Alfred City of Ocoee Mount Dora Polk County City of Apopka Palm Coast Howey-in-the-Hils Auburndale Regional Utilities City of Clermont South Walton Utilities City of Minneola Existing Rates Groveland Orange County City of Umatilla City of Tavares Town of Lady Lake Montverde Fruitland Park City ofL Leesburg Mascotte City of Eustis Town of Oakland City of Winter Garden  $12,0841 $11,3541 $10,2801 $9,3151 $9,2071 $8,8291 $8,7931 $8,3751 $8,0441 $7,9171 $7,6661 $7,3831 $7,0291 $6,8151 $5,5401 $5,3791 $5,3241 $4,7571 $4,5321 $4,0651 $3,9531 $3,5601 $3,5221 $2,9361 $2,8531  Water = Sewer  38    Conclusions  The connection fees should be adopted as calculated.  They reflect the current cost of infrastructure for new development  This will minimize the burden on existing customers Rate Adjustments - discuss general direction (1 of 4 alternatives) for implementing rate adjustments  The alternate rate design should be adopted to promote conservation and minimize impacts to low use customers Due to the magnitude of the CIP and the sensitivity of rate adjustments, the City should consider updating the forecast  each year for the next 2-3 years    Next Steps and Folllow Up  General consensus of rate adjustment alternative  Future Meeting Dates (have already been noticed to customers)  July 1, 2024 - Connection Fees 1st Reading July 15, 2024 - Connection Fees 2nd Reading -- July 29, 2024 - Utility Rates 1st Reading August 12, 2024 - Utility Rates 2nd Reading        RAFTELIS  Thank  you!  Contact: Joe Williams  Michelle Galvin mgalvim@ratels.com  407.960.1806 Mllams@raneis.com