0:00The main agenda item was a detailed presentation by Joe Williams, representing consulting services for water rates and connection fees, who outlined proposed increases in water and sewer connection fees. These fees are designed to ensure that new developments contribute fairly to the city’s costs of growth, preventing existing residents from shouldering the financial burden of expansion. The proposed connection fees are set to rise due to major projects such as the PRWC and the renovation of Wastewater Treatment Plant 3, which requires substantial investment to meet current and future service demands.

Williams detailed the city’s extensive water system, comprising nine treatment plants and infrastructure valued at approximately $25 million, with an additional $57 million projected for improvements. A key project, the PRWC, entails a substantial cost estimated at over $47 million for Winter Haven’s share. The financing structure for these projects is complex, involving various loans with a forecasted interest rate of about 4%. Questions arose regarding the calculation methodology for these fees and the projected PRWC costs. Williams clarified that the 36.5% financing cost reflects an average based on potential loans and debt service payments over 30 to 35 years, noting that while the initial investment is significant, the connection fees would be collected from developers more quickly, allowing the city to offset interest costs.

Discussions highlighted the staggering costs of the PRWC project, expected to total around $470 million, and the Southeast Wellfield project, which is closely monitored by all participating municipalities. The derived connection fee for a water connection, based on average usage, is proposed at $3,671 for a single-family home.

22:45Further, the city’s wastewater management was examined, with current investments around $59 million. The first phase of improvements to Wastewater Plant 3 is projected at about $180 million, addressing capacity to support ongoing growth. The proposed wastewater connection fees are set to double from approximately $5,900 to $11,000, making them the highest in Polk County. This increase is due to the substantial investment required for new growth, reflecting similar adjustments in nearby municipalities like Lake Alfred and Davenport.

The Commission also discussed the implications of the new connection fees on growth. Concerns were raised about whether these fees might slow down development, though it was noted that other areas with increased fees, like Lake Alfred, continue to experience high growth. Commissioners inquired about the number of potential housing units that could be constructed based on currently approved subdivisions, emphasizing the importance of understanding capacity and future planning.

In addition to connection fees, the Commission examined a proposed adjustment to the city’s level of service for water consumption, reducing it from 350 gallons per day to 275 gallons per day. This adjustment aims to improve the city’s position regarding water allocations in land use assignments and site plans.

41:56The meeting also addressed the financial implications of participating in cooperative agreements for water and wastewater services. A representative noted that municipalities delaying participation would face higher costs. The importance of establishing fair share costs for new developments was discussed to ensure current residents do not disproportionately bear the financial burden.

Another topic was the potential for offering credits or financial considerations for long-term residents who had previously paid impact fees when building their homes. The legal perspective emphasized that connection fees are tied to the property rather than the individual, complicating the feasibility of offering credits.

1:38:34The Commission reviewed proposed adjustments to utility rates and the introduction of a new RNR fee. This fee, a fixed monthly charge, aims to prepare for future renewal and replacement costs. The rate adjustments, if approved, would take effect on October 1, with the first reading of the ordinance during the meeting and a second reading scheduled for September 10.

The rate adjustments include a 2.5% annual increase for water services and a 7.5% increase for wastewater services. The new PRWC fee and the RNR fee would support ongoing operational needs and future investments. Despite the proposed increase, Winter Haven’s rates would remain among the lowest in Polk County.

1:56:56The Commission emphasized the need to balance lower rates for existing customers with ensuring that new development contributes fairly through connection fees. The financial strategy aims to avoid drastic rate increases and implement gradual adjustments to manage debt service payments for upcoming capital projects.

57:52The meeting also included updates on various ordinances, site plans, and updates to the city code related to affordable housing initiatives. A collective bargaining agreement with the Police Benevolent Association was presented for authorization, and a significant grant opportunity for a vulnerability assessment on the city’s infrastructure was discussed.