Newberry Sets Budget as Electric And Wastewater Rates Increase

NEWBERRY - On Sept. 23, 2024, the Newberry City Commission finalized financial decisions for the upcoming fiscal year 2024-25. Public hearings were held to adopt a final millage rate, establish a budget and amend utility and development fees. Additionally, a resolution was passed authorizing a loan application to the Florida Department of Environmental Protection State Revolving Fund. The commission also formally declared a state of emergency as Hurricane Helene approached.

Millage & Budget

The Commission adopted the FY 2024-25 final budget and approved a resolution adopting the final rate of taxation and real and personal property. The final millage rate was set at 5.9000 mills, which is 9.83 percent higher than the roll back rate of 5.3721. Reserves are $50,197,159. Assistant City Manager/CFO Dallas Lee said the final General Fund budget is $14,455,349. The final budget with all funds is $34,533,573. The City has reserves of $50,197,159. Final revenues are $54,730,732. He explained that there would be no rate increases for fire services and the millage rate would stay the same as the previous year.

Utility Rates

The Commission approved modest increases in electric and wastewater rates for the upcoming fiscal year. The electric rates will see a 0.05 percent increase across all customer categories, resulting in an additional $1.81 per month for the average residential user, according to Assistant City Manager and CFO Dallas Lee. Non-residential rates will see similar adjustments.

In addition to the electric rate hike, the Commission also passed Ordinance 2024-31, which amends the wastewater rates. At the City Commission’s budget workshop, staff presented proposed changes to the city’s water and wastewater consumption charges. The new rates, which include a 9.5 percent increase in the consumption charge, were incorporated into the budget.

Lee noted that, “After these rates increases, the City of Newberry will offer the second lowest residential water rates in our area.” This move aims to ensure the City's utility services remain affordable while maintaining the necessary revenue to support operational expenses and future improvements.

The City Commission requested that staff evaluate the Florida Public Services Commission’s Annual Price Index for Water and Wastewater Service as part of its rate evaluation and supports using the price index as a basis for rate increases. The FPSC Water and Wastewater Price Index for 2024 is 3.24 percent.

At the City Commission’s Budget workshop staff presented proposed water and wastewater rate changes and the City Commission gave consensus to include those rates in the budget. These changes represent a six percent increase in the consumption charge. “No proposed change in the customer charge,” said Lee. “After these rates increases, the City will continue to offer some of the lowest residential water rates in this area.”

Development Fees

The commission approved a phased 50 percent increase in development fees over the next two years, aiming to offset the impact of ongoing development on the city’s utility infrastructure. Lee emphasized that this step is crucial in meeting the city’s future obligations, particularly with several infrastructure projects slated to cost over $100 million. “The proposed fee increases will ensure we meet our debt obligations with the FDEP,” Lee said.

Development fees are collected to offset development's impact on the utility infrastructure. These fees are charged against new construction at the time of permit issuance to offset the cost of the utility's new infrastructure needs. The City Commission directed staff to hire a consultant to produce a study, which was completed at the end of 2023. The study identified a substantial increase was required to meet the City’s obligations. “The proposed increase steps the increase in over two years. These fees will be sufficient to meet FDEP debt obligations associated with new infrastructure projects,” said Lee.

Municipal Water Storage

The Commission also took a significant step forward in expanding water storage capacity. In 2022, the City was awarded funds from the Florida Department of Environmental Protection (FDEP) State Revolving Fund to complete a Water Facilities Plan to evaluate existing infrastructure and future capacity projections. The Facility Plan has been completed and approved by the FDEP State Revolving Fund. Newberry has now been approved by the FDEP) to receive $5.35 million in construction funds for a new 500,000-gallon water storage tank. This will support the growing demands on the city's water system. As part of the loan process, the Commission passed a resolution authorizing the loan application.

Certificate of Achievement

In other business, Mayor Jordan Marlowe commended the City Manager and staff for receiving the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association for the fourth consecutive year. Marlowe said, “It means that other folks are outside looking in, and they are saying ‘You guys are transparent. You guys are accountable. You guys are financially responsible. ‘I don’t know of any other local community that can claim that.”

Commissioners approved a State of Emergency resolution for Hurricane Helene, which at the time of the Commission meeting, was expected to hit the area on Thursday, Sept. 28. The resolution was effective as of Sept. 24 for seven days or until the emergency has expired.

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