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Ormond Beach
Real Estate and The Florida Lifestyle

Ormond Beach Water and waste rates

ORMOND BEACH - While residents won't see an increase in their city property tax rates in the coming year, they'll be feeling the pinch in other ways. Last week, the city commission voted unanimously to increase water and wastewater rates, levy a solid waste user fee and continue collecting stormwater utility fees for the eleventh consecutive year. The decisions must be approved on second reading at a city commission meeting at 7 p.m. Wednesday, Sept. 17. "None of us like to see increases," Commissioner Lori Gillooly said. "I, too, would like to look into cost savings."

Residents were split when weighing the need for increases against the burgeoning strain on their wallets. Resident Greg Avakian, who spoke out against what he considered a too-high property tax rate, said he'd gladly continue to pay the stormwater fee to protect his home near the Tomoka River.

"This is one tax increase I agree with," he told the commission.

At the Sept. 3 meeting, the commission agreed to tentatively adopt a property tax rate below the rolled back rate, or the rate that would bring in the same amount of revenue as the prior year. Residents will pay the city $3.39 per $1,000 of taxable property. The city will take in $20,000 less in revenue, Mayor Fred Costello said.

Overall, the city made $1.4-million in budget cuts to account for rising costs and decreases in tax revenues. The cuts included 14 full-time and nine part-time employees, mostly from the Leisure Services and Maintenance departments. No public safety employees will be cut, officials said. The commission also agreed to a six-percent increase in water and wastewater rates and tacked a 5.5-percent user fee onto solid waste bills. A $6-a-month stormwater utility fee adopted in 1997 that was scheduled to sunset at the end of this month was also extended for the coming year.

All of the increases were necessitated by effects of a struggling economy, city officials said.

Water/wastewater rates
The minimum water and wastewater bill for a consumer who uses 2,000 gallons or less will increase $1.50, from $25.02 a month to $26.52. The average 5,000-gallon a month user will go from paying $44.70 a month to $47.37.

High users, those who use about 10,000 gallons a month, will now pay $84.36 a month, an increase of about $3.50. The increase, which would take effect Oct. 1, could generate about $900,000 in the coming year to cover the increased costs of fuel, electricity, chemicals and employee salaries, acting city manager Ted MacLeod told commissioners.

Commissioner Ed Kelley said increased rates should convince some households to cut back their usage. The city's "conservation pricing" trend has already kept the per capita usage in the city one of the lowest in the county, he said. "I can tell you as someone who tries to keep their usage to 5,000 (gallons a month), there's a significant difference when you use 8,000 gallons," he said. "It's about $26 a month."

For the lowest users, though, cutting back isn't an option. For that reason, Ms. Gilloly and some residents said they'd like the minimum usage, which is set to cover the cost of the water plant, pipes and other overhead, be reduced to 1,000 gallons a month. "Increasing user fees impacts all residents, especially those on a fixed income," resident Bob Evanoff told the commission.

Solid waste user fee
The 5.5-percent user fee being added to residents' solid waste bills will cover the cost of an adjustment in what Waste Management charges the city to provide twice-weekly pick-up, officials said.

Waste Management raised its rates to compensate for an increase in the Consumer Price Index, a measure of the change over time in the prices of a variety of goods and services calculated by the U.S. Bureau of Labor Statistics.

If approved, residential users will see their bills increase from $11.75 a month to $12.40 a month beginning in October. Recycling costs will go from $2.50 to $2.64.

One resident told the commission she'd rather see the city cut collection before raising rates.

"I believe we don't need as much collection as we're getting," Ormond Lakes resident Barbara Pinney said. "In my neighborhood they come twice a week and many people put out one little plastic bag with trash."

There probably wouldn't be much savings from that, Mayor Costello said. Many residents do need trash pick-up twice a week, Mr. Kelley said.

"My family of three couldn't do with one pick-up," he said.

The increases are also nominal, Ms. Gilloly said. Twenty years ago, in 1988, solid waste cost users just $2.15 less, or $10.25 a month. Stormwater utility fee

Residents have been paying a $6-a-month stormwater fee since 1997 to cover an estimated 10 years worth of improvements that would have cost the city $12 million.

At the 10-year mark, though, the city is $11.6 million into improvements with an estimated $7.4 million in projects left. The city has also identified $2.4 million worth of additional improvements needed to keep the city dry.

In 2006, the city commission turned down a city staff recommendation to increase the fee to $8. Even with maintaining the rates, the city cannot afford any new projects or pipe improvements until 2012, Mayor Costello said.

"I'd rather be taking the flak for raising the rate than ever have this room filled with people that have stormwater problems," he said. This may not be the end of increasing rates and user fees. City officials said the city's aging infrastructure may need millions of dollars worth of work in the coming years.

Replacing the 80-year-old pipes could cost $16- to $20-million, Mayor Costello said, and the numbers are climbing. "The reality is, I want to make sure we take care of our city for the foreseeable future, so there's going to be ... another increase in our utility rates," he said.

By Bethany Chambers Staff writer
Hometown News - http://www.myhometownnews.net/index.php?id=49159