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Tarpon Commissioners Consider Utility Rate Hikes

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THE SUNCOAST NEWS

Published: June 7, 2008

TARPON SPRINGS - - Water and sewer rates in the city will go up each year for the next decade.

The question is by how much?

Mike Burton, president of St. Augustine-based economics consulting firm Burton and Associates, in a water and wastewater revenue sufficiency analysis presented to the City Commission on Tuesday, provided three scenarios for rate increases through the year 2017.

The City Commission will hold the first of two public hearing on possible water and sewer rate increases July 22. The second hearing likely will be held on a date yet to be determined in August.

A key factor in Burton's analysis is his projection of the revenue stream the city's drinking water and waste water divisions will generate. The outlook is slightly downbeat.

Projections of economic conditions suggest reduced growth in the city and therefore less water consumption than might otherwise have been expected, according to Burton. This will translated into less revenue to defray cost of providing the water and sewer services, he said.

Burton suggested three scenarios to protect the solvency of the city's utility system:

•A 10 percent increase in 2009 and 2010, followed by a yearly 2.75 percent increase through 2017.

•A 6.5 percent increase in 2009 and 2010, followed by a 2.75 percent increase from 2011 to 2013, a 7.75 percent increase in 2014 and 2015 to fund wastewater treatment plant expansion and an increase of 2.75 percent in 2016 and 2017.

•A 4.75 percent increase each year until 2017.

Commissioner Chris Alahouzos said the third scenario seems the most practical since it involves small, predictable annual increases. Commissioner Peter Dalacos favors the third alternative as well.

Other commissioners did not weigh in Tuesday night on which option they support.

Mark Schantz can be reached at 727-815-1075 or mschantz@suncoastnews.com.

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