Underground Utilities & Public Infrastructure

Summary of Services

Underground Utilities and Public Infrastructure (UUPI) is a progressive department operating water, wastewater, and stormwater utility systems, as well as public works and transportation infrastructure to serve Florida's seventh-largest city. Major infrastructure includes a 26 Million Gallons per Day (MGD) wastewater treatment facility, 102 pump stations, 1,000 miles of sanitary sewers, 493 miles of storm drains, 110 miles of ditches and canals, 1,200 miles of water mains, 650 miles of streets, eight water towers, and 27 water wells producing 10 billion gallons of finished water annually. UUPI has a skilled workforce of 560 employees, 60% of which have been with the department for over ten years and 30% over 20 years.

The Water Utility

Circa 1895, a City ordinance permitted the construction of privately-owned waterworks to serve the City. In 1908 the City purchased the original water system for $75,000. For over 100 years, City employees have worked to provide our customers and our communities with water that meets all federal and state standards. Sustainably fulfilling this responsibility is critical to our community's physical and financial health. Our technical expertise, leading-edge laboratories, commitment to investing in our infrastructure, and proactive protection of the environment ensure that we are doing everything we can to deliver the Best Drinking Water in Florida.

As a result of our water conservation programs and conservation rates, the Water Utility has seen a steady decline in average per capita water consumption. While this increased conservation aligns with our environmental and social goals, such decreases have resulted in pressures on water rates.

FY23

•Following an FY21 rate study, water rates were increased by CPI set at 8.5% on October 1st, 2022. Total customer impact on average residential utility bill (6,000 gallons) equals $1.91 per month.

•Operating expenditures were redistributed based on a three-year average, resulting in a conservative increase of 3.5%. Additional savings in Utility expense of $510,000 will help offset inflationary pressures and ensures the fund meets its targeted RR&I transfer.

•Capitalized Wage expense is reduced by $660,000 based on historical trends for direct labor charges to projects and aligns with the reductions made in FY2022 to Capitalized Overhead revenue. This reduction results in a net increase in Personnel Services.

•The Renewal, Replacement, and Improvement (RR&I) transfer for the capital improvements of Water infrastructure increased to $6.4 million, up from $6.1 million in FY22.

FY24-27

•Assumptions for rate revenues include modest customer growth of 1% and CPI set at 2.5% through FY2027.

•Operating expenses are estimated at an inflation rate of 2.5% per year and include plans for future debt in FY2024.

•Commitment to capital investments includes a future borrowing in FY2024 and a 5% average increase per year in the RR&I transfer through FY2025.

The Wastewater Utility

Since 1904 the City has provided the complete array of wastewater collection, treatment, and disposal services that are essential to protect the Big Bend region's public health and natural environment. Wastewater services start with a collection system that collects wastewater from residential, commercial, institutional, and industrial customers. The wastewater is transported through a network of sewers and pump stations to the Thomas P. Smith (TPS) Water Reclamation Facility (TPS), a state-of-the-art treatment facility. At TPS, the wastewater is fully treated to meet state and federal quality standards and then pumped to the Southeast Spray Field to irrigate crops for animal fodder. The Wastewater Utility continues to conduct periodic rate studies that address significant issues such as the additional costs for Advanced Wastewater Treatment (AWT) operations, infrastructure improvements for the collection system, the current and projected state of the economy, and growth in its customer base.

FY23

•Following an FY21 rate study, sewer rates were increased by CPI set at 8.5% on October 1st, 2021. Total customer impact on average residential utility bill (5,000 gallons) equals $4.63 per month.

•Operating expenditures were redistributed based on a three-year average, resulting in a conservative increase of 4.7%. Additional savings in Utility expense of $230,000 will help offset inflationary pressures and ensures the fund meets its targeted RR&I transfer.

•The Renewal, Replacement, and Improvement (RR&I) transfer for the capital improvements of Water infrastructure increased to $11.7 million, up from $11.1 million in FY22.

FY24-27

•Assumptions for rate revenues include modest customer growth of 1% and CPI set at 2.5% through FY2027.

•Operating expenses are estimated at an inflation rate of 2.5% per year and include plans for future debt in FY2024.

•Commitment to capital investments includes a future borrowing in FY2024 and a 3.3% average yearly increase in the RR&I transfer through FY2025.

The Stormwater Utility

Established in 1987 to provide Stormwater management services within the City limits, the Stormwater Utility is essential to protecting, preserving, and enhancing our neighborhoods, community, and natural resources. Stormwater Management plays a critical role in controlling flooding, improving safety, protecting water quality, and meeting the requirements of ever-increasing state and federal environmental regulations. Stormwater must be managed for the common good across the whole community because water runoff knows no boundaries. The Stormwater Utility's responsibility and challenge are to repair and maintain existing Stormwater facilities for flood control and water quality treatment and to address the long list of needed capital improvement projects.

FY23

•Operating revenues and expenses were adjusted by CPI at 7% for FY23 and included a $3.6 million transfer to RR&I.

•Personnel cost increased by 9.25% over FY22 partially due to the reduction in capitalized wages and is mitigated by the $106 thousand budget reduction in the operating expenses.

•There is a 10.6% reduction in operating expenses.

FY24-27

•Revenues are stable with the projected CPI of 1.5% and considered minimal customer growth.

•Operating expenses are also estimated at the projected annual inflation rate of 1.5%. A fee study is contemplated in the next few years to assess the long-term sustainability of the Utility.

•Emphasis on maximizing the RR&I transfer through reducing operating expenses will continue to be monitored yearly.

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