Item No: 5B.

Meeting Date: October 8, 2012

From: Bill Spinelli, Finance Director, CPA

Subject: Ordinance establishing new rates for Reuse Water to be effective October 1, 2012

Staff Recommendation:

Staff recommends adoption of the ordinance increasing Reuse Water rates by 1.20% to be effective October 1, 2012.

Analysis:

During the Budget Workshops, the City Commission decided to balance the General Fund budget by increasing the transfers from the utility funds by 1.20%. In order for the utilities to transfer more funds to the General Fund a corresponding increase in utility rates is necessary. The following table demonstrates the new transfer percentage and amounts that will be transferred to the General Fund.

* Reuse Water rate ordinance was not taken to the Commission in September due to Florida Statute requirements which require notification on utility bills of rate hearings.

Options:

1. Adopt the Reuse Water rate ordinance as presented; or,

2. Such alternative action as the Commission may deem appropriate.

Fiscal Impact:

If adopted, this ordinance will increase the Reuse Water revenues by 1.20% which will be transferred to the General Fund by a corresponding increase in the utility transfer amounts by 1.20% accordingly.

Submission Date and Time: 10/8/2012 4:35 PM____

Department: Public Works Prepared by: R. Sharp Attachments: Yes X No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes X No ____ _________________________________ Revised 6/10/04

Reviewed by: Dept. Head ________ Finance Dept. __________________ Deputy C.M. ___________________ Submitted by: City Manager ___________________

Account No. 043-0000-343-xxxx Project No. ___________________ WF No. ______________________ Budget ______________________ Available _____________________

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, INCREASING RATES FOR THE REUSE WATER UTILITY BY 1.20% OVER EXISTING RATES, SPECIFYING HOW THE ANNUAL INDEX DRIVEN RATE INCREASE PROVIDED BY §22 – 166 OF THE CODE OF ORDINANCES SHALL BE APPLIED IN CONJUNCTION WITH THE INCREASE IMPOSED IN THIS ORDINANCE, EXEMPTING DEPOSIT REQUIREMENTS FROM THE RATE INCREASE, REPEALING CONFLICTING ORDINANCES, PROVIDING A SAVINGS CLAUSE, AND PROVIDING AN EFFECTIVE DATE.

BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

§22 – 271 of the Code of Ordinances is amended to increase all rates for reuse water charges which are in effect as of September 30, 2012 (including any prior adjustments applied under §22 – 166 of this Code), effective as to all bills rendered on or after October 1, 2012, by 1.20%. This increase shall apply to base rates only and shall not apply to deposit requirements. The increase imposed annually by §22 – 166 shall be applied on October 1, 2012, to the rate including the additional 1.20% increase imposed by this Ordinance.

SECTION II.

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

SECTION III.

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

SECTION IV.

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the day of , 2012.

THE CITY OF LEESBURG, FLORIDA

BY:

MAYOR

Attest:

CITY CLERK