Revenue Trends

Enterprise Funds

Cemetery Charges for Services

Cemetery revenues are generated from various fees to recover costs related to the operation and maintenance of the Hallandale Beach cemetery, which is owned by the City. Fees include burial permits, purchase of burial space (both residential and nonresidential), interment fees, and sales of vaults, niches, and markers.

Projection Methodology: The FY 2022-23 proposed budget includes a re-distribution of FTE that were previously in other departments to provide the full cost of the fund. This re-distribution totals $302,887

Sanitation Charges for Services

The City provides timely sanitation services to the residents and businesses of Hallandale Beach. Sanitation revenues are currently generated by different user fees established for residential, multi-family and commercial garbage and recyclable collection and disposal services. Residential accounts are billed $27.87 monthly and defined as dwellings with four or less units. The rates vary for the other types of users. Sanitation revenues also include a late payment penalty charge of 10% of the current unpaid balance, charges for bulk trash and yard waste collection services; as well as dumpster rentals, which range from one to forty cubic yards.

Projection Methodology: The FY 2022-23 and FY 2023-24 projections include a growth rate of 1%.

Stormwater Charges for Services

The City is responsible for the cleaning, installation, and maintenance of the City’s stormwater drainage system to alleviate flooding, as well as for the maintenance of numerous pump stations. Revenues are generated through monthly stormwater drainage user fees based on an equivalent residential unit (ERU). The Stormwater Drainage Fee for single family residential properties (classified as one ERU) is $88.44 annually or $7.37 monthly. The $88.44 annual fee includes $44.22 to fund the local share for the FEMA Grant for the Southwest Drainage Improvement Project. Properties other than residential are billed by their calculated equivalent number of ERU’s. Stormwater fees also include a late payment penalty charge of 10% of the current unpaid balance.

Projection Methodology: The FY 2022-23 and FY 2023-24 projections include a growth rate of 1%.

Water and Sewer (Utility) User Charges for Services

The primary source of revenue generated in the Utility Fund are the water and sewer user charges levied on all the City’s utility customers. These revenues are used to fund the operating and maintenance costs of the utility, debt service requirements and capital improvement projects. Water revenues are generated from monthly user charges for the sale of potable water to customers connected to the City’s water distribution system. The fee schedule for water includes a monthly base charge, regardless of whether the service is turned on or off. In the FY 20/21 budget, the monthly base charge is proposed to increase from $20.35 to $20.96 as well as the step rates in all usage levels (see table below). Sewer charges are billed to customers connected to the City’s sewer system. The fee schedule for sewer includes a monthly base charge. This monthly base charge is proposed to increase from $20.21 to $20.61 as well as the step rates in all usage levels (see table below). Water consumption is used as the basis for sewer billings. Both the water and sewer rates are based on a tiered rate structure intended to encourage water conservation. In other words, the more water a customer uses, the higher the rate for the incremental amounts. Other water and sewer revenues include tap installation charges for water customers for the initial connection to the City’s water system, service charges collected from water customers for connection and disconnection from the City’s water distribution system, tampering fees, water, and sewer late payment penalty charges of 10% of the current unpaid balance and fire line rental and inspection fees.

In accordance with the loan agreement, if in any fiscal year, the City fails to comply with the rate covenant, the City must hire a rate consultant to conduct a rate study. At the August 15, 2018 City Commission meeting, the Water, Wastewater and Stormwater Utility Rate Study was presented and discussed. The report recommended rate adjustments for both water and sewer. A determination was made by the City Commission regarding the changes to the water and sewer rates. Therefore, in the FY 19/20 budget, in FY 20/21 and in FY 21/22, there is a 3.0% rate increase in water and a 2.0% rate increase in sewer applied uniformly to the monthly base charge and usage charges. It should be clear that the technical default did not result in the debt service not being paid. In fact, the debt service was paid timely.

Projection Methodology: There are no proposed rate increases for FY 2022-23 and revenues for water sales remain flat for FY 2022-23. There is a slight increase in sewer sales due to trend analysis.