VERO BEACH — Residents could see increases in their water and sewer bills over the next several years as the city moves forward with a proposed rate ordinance following a recent rate study.
City water and sewer director Rob Bolton said the proposed changes stem from a formal financial review and upcoming infrastructure costs.
“We've done a rate study and rate analysis and we know the amounts that need to be increased and we're going forward with an ordinance to raise them by the levels accordingly that were identified in the rate study itself.”
He said the process has already advanced to the next step in the city’s rate-setting procedure.
“So the rate study was approved to move forward and then they'll do a rate ordinance. The rate ordinance requires a public hearing and that's what's scheduled in August,” Bolton said.
Under the current structure, the combined water and sewer bill is $83.54 for 4,000 gallons of usage. If approved, the increases would phase in over the next several years, reaching $122.45 by 2030.
The largest increases would come in 2027 and 2028, with hikes of $11.38 and $12.38, respectively. Smaller increases are projected for 2029 at $9.38 and in 2030 at $5.77.
Bolton said inflation and major capital financing needs are key drivers behind the proposal.
“Inflation is the big one and it was brought about because we're about to borrow money for our water reclamation facility. So the rate analysis had to be done to identify if we were collecting enough revenue to pay back debt,” he said.
The $164 million water reclamation facility, known as One Water, is planned near the Vero Beach Airport and is expected to reduce nutrient pollution in the Indian River Lagoon.
Bolton said periodic rate reviews are standard practice for utilities managing large infrastructure systems.
“Every five years, you usually go through a rate analysis and they project what they think from past practices and they look at the health of the collection of what you're collecting. Are you covering debt? Are you providing enough money for capital replacements and operations and everything else? And so it's a normal process to look at it every five years and put in increases,” he said.
The city has tentatively scheduled two public hearings on the proposal for Aug. 11 and Aug. 25, where residents can comment on the planned increases.