CITY OF LABELLE  Cityof) LaBelle  MINUTES  City Commission Workshop Thursday, July 11, 2024, at 3:00 PM LaBelle Commission Chambers 481 West Hickpochee Avenue LaBelle, Florida 33935 CITY COMMISSION: Julie C. Wilkins., Mayor Dainel Akin, Commissioner Jackie Ratica, Commissioner Bobbie Spratt, Commissioner Hugo Vargas, Commissioner ADMINISTRATION: Tijauna Warner, Deputy City Clerk Derek Rooney, Esq., City Attorney Mitchell Wills, Superintendent PW    City Commission Workshop LIMITED CAPACITY July 11, 2024  Page 2 of3  MINUTES  A. CALLTOORDER  The workshop was called to order by Mayor Wilkins at 3:15 PM. B. INVOCATION AND PLEDGE OF ALLEGIANCE  Commissioner Vargas led the invocation, Commissioner Akin led thel Pledge of Allegiance.  - ROLLCALL PRESENT Mayor Julie C. Wilkins Commissioner Dainel Akin Commissioner Jackie Ratica Commissioner Bobbie Spratt Commissioner Hugo Vargas City Attorney Derek Rooney via phone Deputy City Clerk Tijauna Warner  1. RAFTELIS PRESENTATION -1 Rate Study  Shawn Ocasio (Manager Raftelis) gave a brief presentation on Water and Wastewater Utility Rate and Connection Fee Study. He gave the agenda ofhis presentation as follows: Prior Presentation Recap, Revised Revenue Sufficiency Analysis, Revised Connection (Impact) Fee Analysis, and Mr. Ocasio advised that the utility is reported as an Enterprise Fund for financial reporting purposes and monthly user rates pay the costs of providing service. Major issues facing utility is impacts ofinflation on the cost of operation and maintenance and capital projects. He advised that Consumer Price Index 20% increase since 2019, Construction Materials Index 41% increase since 2019, and Industrial Chemicals Index 25% increase since 2019. All these increases have been Mr. Ocasio informed everyone that since the last workshop the City and Consulting Engineers provided information on $261 Million in additional grant funding secured for utility capital projects, significantly reduced anticipated borrowing for funding capital projects. Updated projected financing assumptions using updated information from FDEP advised lower interest rates from 3.3%-3.8% down to 1.1%-2.1%. Grant and debt assumption updates reduced the projected annual debt service payments by approximately $2.3 million per year by 2029 and extended timeline to build up adequate operating reserves (3 years from 1 year). The updates provide additional flexibility for rate adjustments compared toj prior plan. The proposed rate trajectory was revised to slightly to reduce and phase in rate increases. Reduced cumulative bill increases to customers by Mr. Ocasio presented the connection fees background. Connection fees are charged to first time construction or redevelopment that place increased demand on capital facilities. The purpose of connection fees are to recover growth-related capital costs from new development responsible for additional costs such as mitigates growth-related costs from impacting existing users and new growth "pays its own way" for utility infrastructure costs. It can only be used on expansion-related capital projects or associated debt payments but not for renewal and replacement (R&R) projects.  Conclusions and Recommendations.  absorbed by current utility rates.  approximately 22% by 2028.    City Commission Workshop LIMITED CAPACITY July 11,2024  Page 3of3  Mr. Ocasio recommended adopting the proposed monthly user rate adjustment plan, the first 3 years ins support of debt financing activities and to improve financial position, the proposed connection (impact) fees, and implementation of pending City determination of fee type. Also, reevaluate forecast plan in mid 2025 for changes in capital project costs and timing, growth and development, operations and related costs, and grant funding. A discussion ensued regarding the Mr. Scott (Woodard & Curran) provided insights on the Raftelis Rate Study and presented an overview of the City ofLaBelle Capital Improvement Plan. Following this presentation, a detailed There being no further business to discuss, Mayor Wilkins adjourned the workshop at 4:28 PM.  recommendation of Raftelis.  discussion ensued regarding the information presented.  Julie C.  Cucwl6  Wilkins, Mayor  35 ATTEST: Tijauna Warner, MMC, City Clerk