City of Groveland Minutes City Council Special Meeting Monday, August 12, 2024  The Groveland City Council held a Special Meeting scheduled meeting on Monday, August 12, 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 6:01 p.m. with the following members present: Vice Mayor Mike Radzik, Council Members Barbara Gaines, Richard Skyzinski, and Dina Sweatt. City officials present were City Manager Mike Hein, City Clerk Virginia Wright, Sergeant-At-Arms Chief As an alternate option, the public was provided the opportunity to attend the. August 12, 2024 City Council Special Meeting 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.groveland-f.gov, and  Shawn Ramsey and City Attorney Anita Geraci-Carver  int the display board at City Hall.  AGENDA  1. Consideration of Approval Ordinance 2024-5: Amending Section 78-24 in Chapter 78 of the Code of Ordinances of the City of Groveland to provide for adoption of utility An ordinance of the City of Groveland, County of Lake, State of Florida, amending Section 78-24 in Chapter 78 of the Code of Ordinances of the City of Groveland to provide for adoption of utility rates by ordinance; creating Article X in Chapter 78 of the Code of Ordinances of the City of Groveland to provide a schedule of utility rates for potable water, wastewater, and irrigation and reclaimed water; providing for codification and severability; An ordinance of the City Council of the City of Groveland, Florida, adopting new water, wastewater, and migationreclamed water rates. This will be the first adjustment since 2020 following historic inflation. The adjusted rates will provide the City with the ability to maintain a quality level of service for operations and maintenance of the existing facilities as well as cover debt service, including on very low interest loans provided by the State of Florida. The rate structure takes into account more than $60 million in grants, thusn reducing the financial burden on customers. This requested action is based on the financial report produced by consultant Raftelis. The requested action on this ordinance follows previously adopted Ordinance 2024-04, which substantially increased utility impact fees/connection fees in order to hold new development inancalyresponsible for their impacts on the utility  rates- Second Reading  and providing for an effective date.  systems.  City Clerk Wright read Ordinance 2024-5 title and headnote into the record. an overview as attached to these minutes as Attachment 1 as follows:  Transportation & Public Works Director T.J. Fish referenced the presentation and provided  1    AUGUST 12, 2024 CITY COUNCIL SPECIAL MEETING MINUTES  1. Brief History 2. Key Forecast Assumptions 3. CIP Funding Plan 4. Revenue Sufficiency Forecast 5. Rate Design 6. Findings & Recommendations  Groveland Utilities - AF Recent History 2020-Present 2020 = Utility Master Planning Begins  2021 - Completion of Facilities Plans of Existing Needs = Approved by DEP 2022 = Completion of Utility Master Plan (UMP) and Commencement of Design of Capital 2023 - Completion of Design Phase of Capital Projects and Commencement of Raftelis Funding  Projects - DEP Loan Program  Study  2024 - Transition into Construction Phase - Funding Agreements Pending  Justin DeMello of Woodard & Curran provided an overview, pages 4 -10 of the presentation as  attached to these minutes as Attachment 1 as follows:  Recent Actions by City Council  Public Workshop on April 29 on Utilities Capital Needs Rate and Connection Fee Study dated July 1  Public Workshop on June21 on pending results of the Raftelis financial analysis Ordinance 2024-4 presented for First Reading on July 1 to adopt the Raftelis 2024 Utility Ordinance 2024-4 also adopts effective October 1 new water and wastewater connection Ordinance 2024-4 approved on Second and Final Reading on July 15 adopting significant  fees or impact fees  connection/impact fees to ensure growth pays for growth  Identified 5-Year Capital Needs Summary Leverage Opportunities - Success!  SRF Loans  Strategy & Next Steps to Execute Key Forecast Assumptions and Notes  Joe Williams, Senior Manager with Raftelis referenced pages 11 - 39 of the presentation, attached to these minutes as Attachment 1 and provided an overview as follows:  2    AUGUST 12, 2024 CITY COUNCIL SPECIAL MEETING MINUTES  CIP Funding  CIP Summary - Major Projects CIP Summary New Loans for CIP  Water & 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 Forecast Rate Adjustment Revenue Sufficiency at Proposed Rates Utility Reserve Forecast  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 Utility Bill Comparison at 4,000 Gallons Consumption  Conclusions  Requested City Council Action  Mr. Fish announced that Deputy Finance Director Joe Romano is in attendance to assist Brenda Toscano, Assistant to City Manager read a letter in the record from resident DanAnderson  customers who would like assistance with their utility bill.  supporting Ordinance 2024-5, as attached to these minutes as Attachment 2.  Motion: Council Member Skyzinski moved to approve Ordinance 2024-5: Amending Section 78-24 in Chapter 78 of the Code of Ordinances of the City of Groveland to provide for adoption of utility rates - Second Reading; seconded by Council Member Gaines.  3    AUGUST 12, 2024 CITY COUNCIL SPECIAL MEETING MINUTES  Public Comment:  H.R. Russell asked for clarification on how the rate increase would be calculated. Mr. Fish stated with the new structure customers would pay a base charge each month to be connected to the system. At this point, customers pay per one thousand (1000) gallons for usage only. Mr. Fish recommended homes without a separate meter for irrigation can purchase as second meter to avoid being charged for wastewater on potable water for Mr. Russell inquired if impact fees had been calculated to keep up with the growth oft the City. Mr. Fish stated an ordinance to raise impact fees had been approved in July as part of the Utility Master Plan. Mr. Russell asked if the increase would be enough to sustain future growth. Mr. Fish stated this would be revisited and recalibrated as needed each year. Keith Keogh referenced water conservation. He asked during a public presentation that it be made aware agricultural is not included. Mr. Keogh also asked if the conservation efforts included surface water and the aquifer. Mr. Fish stated private wells or waters would not be included. Mr. Keogh stated agriculture may need to be defined within the City Strategic Plan as it may not be five (5) acres. Mr. Keogh stated people may not want to use Mr. Keogh asked what could be done for places like his own property and Garden City, if they chose to hook up to the sewer. He inquired if the full impact fee need to be paid or would the City be able to assist. Mr. Fish reported Garden City was outside of the city limits and paid a surcharge for services. He added the City would need a financial incentive from the State of Florida whenever looking to convert a neighborhood from septic to city sewer or the neighborhood would need to pay into those costs. Mr. Keogh asked for a recap in six (6) months to see how close we were to the forecast. Mayor Wilson inquired if the entire Garden City development would be required to annex into the City. Mr. Fish stated just focusing on connecting Garden City to the sewer system would require the entire neighborhood. Kimberly Pineda stated she felt forty percent (40%) was a lot. However, she understood why it was needed at this time. Ms. Pineda recommended annual reassessments and monitoring to ensure we do not end up in the same Amy Jo Carroll stated her main concern was that there are a lot of struggling families. She asked if the City had anything in place to assist those families. Council Member Sweatt stated she works with the local food bank, in which social services are available at the food bank to assist those in need with  the home.  reclaimed water for edibles or food.  situation in the future.  their water bills and other items.  4    AUGUST 12, 2024 CITY COUNCIL SPECIAL MEETING MINUTES  Jennifer Eastridge asked if having two (2) meters meant four thousand (4,000) gallons in total or per each meter. Mr. Fish stated potable water, drinking water, and wastewater would be charged at the same rate if there was only one (1) meter. He noted that with two (2) meters the irrigation would be a separate rate and structure. Ms. Eastridge inquired as to the cost of the meter. Mr. Fish stated off the top of his head it was four hundred dollars ($400, however, he was not certain and would verify the amount. Motion passed with all Council Members present voting aye.  ADJOURNMENT  Mayor Wilson adjourned the meeting at 7:21 p.m.  a Groveland FLORIDA Cywthsimmicham  Attest:  8  5    ATTACHMENT 1    City of Groveland  Utility Rate Study August 12, 2024  RAFTELIS    Agenda  1.3 Brief History  2. Key Forecast Assumptions 3. CIP Funding Plan  4. Revenue Sufficiency Forecast  5. Rate Design  6. Findings and Recommendations  2    Groveland Utilities - A Recent History 2020-Present  2020 - Utility Master Planning Begins  2021 - Completion of Facilities Plans of Existing Needs - Approved by DEP  2022 - Completion of the Utility Master Plan (UMP) and  Commencement of Design of Capital Projects - DEP Loan Program 2023 - Completion of Design Phase of Capital Projects and  Commencement of Raftelis Funding Study  2024 = Transition into Construction Phase - FUNDING AGREEMENTS PENDIN  wpprd Curran  3    Recent Actions by City Council  Public Workshop on April 29 on Utilities Capital Needs  Public Workshop on June 21 on pending results of the Raftelis financial analys Ordinance 2024-04 presented on July 1 and July 15 to adopt the Raftelis 2024 Utility Rate and Connection Fee Study dated July 1 and to adopt new water wastewater connection fees/impact fees to ensure growth pays for growth Ordinance 2024-05 approved on First Reading on July 29 supporting new rate structure affording City with major grant and low-interest loan opportunities.  vppars Curran  4    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 9131,827,061 $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 5  Woodard Curran    Leverage opportunities. 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/Treatmentpistripution) Planning and Design Planning Planning and Design Construction  DW350620 DW350621 DW350621 LS35064 SW35063 WWW350612 WW35061 WW35065  1.50% 2.35% 1.42% 0.00% 0.54% 0.06% 0.54% 1.79% Total $77,266,017.00  $3,071,200.00 $8,310,100.00 $24,893,836.00 $265,200.00 $300,000.00 $1,964,079.00 $38,260,302.00 $201,300.00  Grants Secured Lead Service Line Replacement Groveland LFA Wells at Villa City Sunshine/Sampey, Sunshine/Sampey, Regional WWWTP Vulnerability Assessment Sampey WWTF Lower Floridan Reclaim Well at Sunshine Crystal Lake Waterside Pointe Stormwater Improvements  Planning/Design (LCRR) Construction- Sunshine Planning Design Planning/Design Regional WWWTP Planning Construction Construction Sunshine Construction - Crystal Lake amangDesgnCominucion  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 Total $14,200,159  LPA0297-SW $950,000 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  6  $3,310,000 $45,563,000    SRF Loans  Securing the SRF Loans:  AktASodndvwa). Treatment andl Transmission  > City does not currently qualify  Good: afternoon,  for  ljust wanted tof follow upo on myprevious emailr regarding thet financials. It does not appeara asit affordt this loan. Havetherebeen: anyr ratei increasesimplemented recently thaty we are unaware of. is sas  borrowing  Rate and Impact Fee adjustments are required Failure to secure the SRF loans will put all of these critical construction projects in  hnyealisngtnras Thank you,  Scott McArthur Goverment Operations ConsultantI Division of Water Restoration Assistance State Revolving Fund Program Scolt. MoAturgHonoaDePsor Ofice: 850-245-2998  jeopardy.  Woodard Curran  7    Grant Awards  Grants awarded to the City of Groveland for projects identified as existing customer needs are applied to projects in order to benefit  existing customers (Sampey WWTP, Villa City WTP)  Grants (also known as principal forgiveness) remove the expense  debt service on loans - grants help keep rates lower  Some major grants are administered through the State Revolving Fund (SRF) Program and require a Rates Sufficiency Determinatio  8  Woodard Curran    Strategy & Next Steps to Execute  Next Steps:  Growth will pay for Growth - New Connection Fees/Impact Fees Adopted by Ordinance 2024-04 Ordinance 2024-05 adjusting Utility Rates enables City to complete projects timely under  ONe BIT a  State requirements  Secure FDEP SRF Loan Awarded: Nov. 2023 -  Awaiting Rate Sufficiency Secure FDEP SRF Loan: August 2024 Execute Critical Construction Contracts  Continue to Leverage Local, State and Federal  Alternative Financing (Grants!)  9  Woodard Curran    2024 Budget  Escalation Factors for: Labor Chemicals  Health Insurance Fuel  Key Forecast Assumptions and Notes  Forecast remaining 5 years General Inflation Electricity  Significant upgrade and investment to existing facilities (including Sampey Wastewater Plant) along with capacity expansions for 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    CIP Funding Plan  11    CIP Summary - Major Projects  Major Projects Include:  Villa City Water Improvements, $27,575,800  Villa City Water Improvements - $27,575,80 Villa City WWTP Improvements - $71,073,3  Sampey WWTP Improvements, $52,698,300  Sampey WWTP  -  Improvements $52,698,30  Sampey WWTP - Old Plant being modernized Villa City WTP - New Drinking Water Treatment Plant to'be grant funded - future City water Villa City WWTP - New Wastewater Treatment Plant to be grant and developer funded  and expanded  Villa City WWTP Improvements, $71,073,300  supply    Capital Improvements Plan = Other Projects  Automated Meter Infrastructure - Meter Replacement Program - Replacing approximately 5,000 older water meters and establishing remote reading usage in real time = will be able to alert customers early to high usage Asbestos Water Main Replacement Program, Phase 3 - Replacing old water mains and lines in the Magnolia Street/Beech Street Area  Upgrade of the Sunshine Reclaimed Water System pumping system - will improve irrigation water pressures and supply for the northern part of the  City (Trilogy, Estates at Cherry Lakes, Phillip's Landing)  First Lower Aquifer Wells (Sunshine and Villa City) - State Mandate Lead Line Inventory and Replacement Project - Federal Mandate Utilities Emergency Operations Building - Hardened building to house  utilities technology and to stage for storm events    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 0 6,662,500  1,416,200 2,600,400 572,100 0 6,829,100  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  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 First Payment  Service $76,600 $16,500 $119,300 $23,300 $2,623,000 $421,400 $754,200  &Interest Rate  2024 SRF W-1 Lead service lines 2024 SRF W-2 Lead service lines  2025. 2025 20251 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 CWSRF  Various projects Ribs/Lift Stations/etc.  2026 Villa City SRF Villa City WWTP 2026 W SRF -1 AC Mains replace  $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  2026 W SRF -2 Line of Credit  Various projects Various projects    Water and Sewer Revenue  Sufficiency Forecast  16    Existing Water Rates (October 1, 2020)  Monthly Base Charge Residential  Inside Rate $11.80 23.59 $11.80 29.49 58.98 94.36 188.80 295.00: 590.00  Volumetric Charge  Inside Rate  Residential  Residential 2 Homes on 1 Meter Commercial: %-Inch 1-Inch 11 %-Inch 2-Inch 3-Inch 4-Inch 6-Inch  Minimum Gal 4,000 (Inc. in Base) AUsageA Above 4,000Gal Commercial AIIC Consumption  $0.00 3.09 $4.12  17    Existing Irrigation & Reclaimed Rates  (October 1, 2020)  Monthly Base Charge  Inside Rate $2.78 6.95 13.89 Block:3 22.22 44.43  Volumetric Charge Inside Rate  34-Inch 1-Inch 17-Inch 2-Inch 3-Inch  Block: 1 Block 2 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 16,000 6,001-1 16,000  16,001-30,000 30,001- a 50,000 16,001-30,000 30,001-5 50,000  Above. 50,000 Above 50,000  15,001-40,000: 40,001-75,000 75,001-125,000: Above 125,000 15,001-40,000 40,001-75,000 75,001-1 125,000 Above 125,000 30,001-80,000 80,001-150,000 150,001 2 250,000 Above 250,000  18    Existing Sewer Rates (October 1, 2020)  Monthly Base Charge Inside Rate  Volumetric Charge  Inside Rate  Residential  $29.92 59.84 $29.92 74.84 149.67 239.49 478.75 748.05 1,496.11  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) AIIL UsageAbove 4,000Gal Commercial All Consumption  $0.00 2.311 $2.31  19    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 FY 2025 FY 2026  FY 2027 739 2,546  FY2028 643 3,189  171 171  643 814  993 1,807  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 O&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  FY2024 Operating Expenses  FY2025  FY2026 Debt Service  FY2027  Other Expenses/Transters -Revenues From Existing Rates  21    Forecast Rate Adjustment  Fiscal Year Rate Adjustment  Effective Date October 2024 October 2025 October 2026 October 2027  FY2025 FY2026 FY2027 FY2028  40.0% 10.0% 10.0% 10.0%  Note: Rates in future years include inflationary adjustments  22    Revenue  $25,000,000  Sufficiency at Proposed Rates Rate phasing is balanced with immediate needs for revenue sufficiency, coverage, and fund balance needs  920,000,000  $15,000,000  $10,000,000  $5,000,000  -  $0  FY2024 Operating Expenses Other Expenses Transfers Revenues From Proposed Rates  FY2025  FY2026 Debt Service Revenues From Existing Rates  FY2027  FY  23    Utility Reserve Forecast  $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0  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  FY2024 Operations Fund (400) Water Connectionl Fee Fund (401) Capital Fund (403) Operating Fund Target 20% ofO&M  FY2025  FY2026  FY2027 Sewer Connection Fee Fund (402)  FY2028  24    Rate Design  25    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  Existing Rate Structure  Description [1]  Rate Design [3]  [2] $16.52 $33.03  Residential  $10.04 20.06  Residential = 2 Homes 1 Meter  Commercial 34-Inch 1-Inch. 1 %-Inch 2-Inch 3-Inch 4-Inch 6-Inch 8-Inch 10-Inch  $16.52 41.29 82.57 132.10 264.32 413.00 826.00 N/A N/A  $10.04 25.10 50.20 80.32. 160.64 251,00 502.00 803.20 1,154.60  [1] Existing rate structure includes the 40% 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.  27    Proposed 2025 Rates - Water, cont.  Residential Usage Rates:  Existing Rate Structure [2] $0.00 4.33 4.33 4.33  Rate Design [3] $1.65 3.30 3.85 6.59  Description [1] 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 Structure [2] $5.77  Rate Design [3] $6.05  Description [1]  AUsage  [1JE Existing rate structure includes the 40% 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.  28    Proposed 2025 Rates - Sewer  Existing Rates [2] $41,89 83.78  Description [1]  Rate Design [3]  Residential:  $23.37 46.73  Residential - 2 Homes 1 Meter Commercial 34-Inch 1-Inch 11 %2-Inch 2-Inch 3-Inch 4-Inch 6-Inch 8-Inch 10-Inch  $41.89 104.78 209.54 335.29 670.25 1,047.27 2,094.55 N/A N/A  $23.37 58.43; 116.85 186.96 373.92 584.25 1,168.50 1,869.60 2,687.55  [1] Existing rate structure includes the 40% rate increase for FY 2025. Rate design is shown to produce the same amount oft 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 - Sewer, cont.  Residential Usage Rates:  Existing Rate Structure [2] $0,00 3.23 3.23  Rate Design [3] $5.28 5.28 6,59  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] $3.23  Rate Design [3] $6.33  Description [1]  AIl Usage  [1]E Existing rate structure includes the 40% 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 ofs sewer consumption in the base charge. [3] Includes 0 gallons of sewer consumption in the base charge.  30    Proposed 2025 Rates - Irrigation  Base Charges  Existing Rate Structure [11  Description  Rate Design  Meter Size 34-Inch 1-Inch 1%-Inch 2-Inch 3-Inch  $3.89 9.73 19.45 31.11 62.20  $5.03 12.54. 25.10 40.15 80.30  [1JExisting rate structure includes the 40% rate increase for FY 2025. Rate design is shown to produce the same amount of total irrigation revenues.  31    Proposed 2025 Rates - Irrigation, cont.  Usage Rates:  Existing Rate Structure $3,82 4.33 4.75 5.67 6.89  Usage Block [11  Rate Design  Block1 Block 2 Block 3 Block 4 Block 5  $3.63 4.23 7.251 9.34 11.54  [1] Existing rate structure includes the 40% rate increase for FY 2025. Rate design is shown to produçe 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  6,001-16,000 6,001-1 16,000  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 15,001-40,000 40,001-75,000 75,001-1 125,000 Above 125,000 30,001.-8 80,000 80,001-1 150,000. 150,001-250,000: Above 250,000  32    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 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  $44.46  $41.72  $40.42  $36.75  $33.41  FY2024  FY2025  FY2026  FY2027  FY2028    Rate Design Impacts = 2,000 Gallons  70 60 50 40 30 20 10 0  $62.92  $57.20  $52.01  $47.27  $41.72  FY2024  FY2025  FY2026  FY2027  FY2028    Rate Design Impacts = 4,000 Gallons  90 80 70 60 50 40 30 20 10 0  $81.38  $73.98  $67.27  $61.13  $41.72  FY2024  FY2025  FY2026  FY2027  FY2028    Rate Design Impacts = 20,000 Gallons  350 300 250 200 150 100 50 0  $323.18  $293.74  $266.99  $242.65  $128.12  FY2024  FY2025  FY2026  FY2027  FY2028    Local Utility Bill Comparison at 4,000  Gallons 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  $106.97  $84.70 $79.70 $77.84 $75.35 $71.46 $66.54 $66.30 $64.73 $64.01 $61.13 4 $51.31 $50.98 $47.91 $46.77 $41.72 $40.94 $33.01 $31.36 $40.00  Other Utilities Average: $62.35  $0.00  $20.00  $60.00 Water Wastewater  $80.00  $100.00  $120.00  38    Conclusions  Adoption of previous Ordinance 2024-04 increases connection fees/impact fee to ensure growth pays for itself - provides revenues to assist with debt service  The alternate rate design should be adopted in FY 2025 along with the recommended rate adjustment to promote conservation and minimize impacts  to low-use customers  The proposed rate adjustments for future years of FY 2026 through FY 2028 should be adopted to provide funding for operating, capital, and debt-related  requirements  Due to the magnitude of the CIP and the sensitivity of rate adjustments, the Cit should consider updating the forecast each year for the next 3 years    RAFTELIS  Thank  you!  Contact: Joe Williams  Michelle Galvin mgalvin@raltels.com  407.628.2600 illams@rartels.com    Requested City Council Action  Following public comment as part of this public hearing, staff recomme action to approve Ordinance 2024-05 on Second & Final Reading  41  Woodard Curran    ATTACHMENT2    230 Silver Maple Road Groveland, Florida 34736 July 18, 2024  Mayor Evelyn Wilson Vice Mayor Mike Radzik Councilwoman Barbara Gaines Councilman Richard Skyzinski Councilwoman Dina Sweatt  Re: Reaffirmation of Support for Groveland Utility System Rate and Connection Fee Adjustments  Honorable Mayor, Vice Mayor and Council Members:  Dan Anderson here again, a seven year resident oft the City and retired utility financial consultant. Iwrite you this letter to reaffirm my support for the adoption oft the recommended utility rates and connection fee adjustments as proposed by our rate consultant Raftelis. Thank you for allowing me to read my previous letter of June 14, 2024 intot the record at the July 1* Council Meeting. Iwas very pleased that Council unanimously: approved thei first reading of the ordinance for the adjustments of the connection My previous letter primarily addressed the need to adjust the connection fees to provide that growth in our City pays its fulla and fair share of capacity expansion capital costs. This current letter focuses on the need to adjust the utility water, wastewater and reclaimed water monthly rates. The connection fees and utility rates are interlocking components oft the foundation oft the financial plan for our utility system. Adoption oft the recommended adjustments to both is absolutely crucial for the future financial Al key tablei in thel Raftelis draft rate study report is "Table: 16: Debt Service Coverage Forecast- Utility". For Fiscal Year ("FY")2024, Projected All-In Coverage is a value of0.90. This value less than unity indicates that Net Operating Revenues for the current fiscal year are insufficient to payt total debt service. Because projected coverage values for future years incorporate recommended rate increases, acceptable levels of coverage are: shown for those years beyond FY: 2024. Without the rate increases, however, unacceptably low values for Projected All-In Coverage would be shown. Achieving adequate coverage annuallyi is at fundamental financial requirement to obtain, as well as retain, the low-cost debt and grant funding that are part oft the utility financial plan. Without adoption of the recommended rate increases for next fiscal year, the City would riskj jeopardizing the entire utility financial plan. (The Finance Director and City Attorney can provide details as to specifics of the negative implications of  fees.  success of utility system.  failure to adopt the needed rate increases.)    Raftelis made several recommendations fora adjustments to the rates, all ofwhichlsupport. Elimination oft the gallonage allowance in the minimum monthly water charge has the double benefit of enhancing conservation plus reducing the cost impact on the financially vulnerable residents of our City. Adopting an increasing block rate structure will further enhance water conservation efforts. One caveat with respect to inclining block rates is that price elasticity effects may reduce aggregate monthly metered water usage to generate revenues int the various blocks. Thus, close monitoring oft total billable volumes ine each rate block over the next several years is important to maintaining our revenue: sufficiency to Asa resident of our charming City, Ifeel indeed fortunate that we continue to make needed progress,  meet all financial requirements oft the utility system.  including financially, with our Utility! System. Thank) you for your consideration.  Very truly yours, /s/ Dan Anderson