BY MARK J. CRAWFORD
Telegraph Editor
STARKE — Miscommunication forced the city of Starke to restart the process of raising its water and sewer rates.
The ordinance approved on first reading May 3 replaced a previously approved ordinance, substituting a rate structure like the one already in place.
The structure proposed by City Manager Drew Mullins would have replaced base rate and consumption charge for residential customers, charging those consuming less than 2,000 gallons a month a flat fee of $20.84. For each additional 1,000 gallons used, the customer would pay $6. The wastewater charge would be calculated at 150% of the water charge.
Those using 2,000 gallons a month or less — which represents most of the city’s customers —were projected to save money. At the same time, those who used more would pay more.
Mullins explained to the commission that the replacement ordinance simply raises rates 20% across the board.
According to City Clerk Jimmy Crosby there was a conflict entering the new methodology into the billing system. When they were trying, they realized it would also raise far more revenue than needed — $1.7 million — and cause some customers’ bills to double.
The target revenue calculation was also off by $500,000. Starke spent that money on Orange Street utility improvements. It was still showing on the books as a deficit, even though the city had committed pandemic relief funding to cover the costs. The city didn’t need the extra money.
“It’s kind of like gas prices went up from $3 to $5, then we’re going to drop it back to $4. Everybody should feel a little better than they did at $5,” Crosby said.
The substituted rate structure sets the base rate for first tier residential and commercial customers at $20.84 for water and $37.55 for sewer. Outside the city limits, the charges are $31.26 and $56.33. The base charge increases with meter size for commercial customers, going as high as $436.50 for water and $716.28 for sewer (multiply by 1.5 outside the city limits).
The consumption charge is preserved in the substitute ordinance, setting the first tier at $0.001068 per gallon for residential customers and $0.001320 for commercial customers, up to 10,000 gallons. The consumption charge increases for every additional 10,000 gallons used, and customers outside the city limits pay higher rates as well.
The city has raised its water and sewer rates multiple times to make sure the utilities were paying for themselves. The increase proposed now would help the city repay debt from the reconstruction of the wastewater plant.
Crosby said a rush to prove the city could meet its debt obligations contributed to the problems with the previous ordinance. Mullins took responsibility for the miscommunication. Attorney Clay Martin, however, said he had misunderstood Mullins’ proposal.
Martin explained that instead of increasing residential bills $6 for every 1,000 gallons of water used, the ordinance he wrote compounded the charge, so the second tier increased $6, then $12 for the third, $18 for the fourth, etc.
That’s what alarmed Crosby, who said he refused to adopt the new rate structure. They could have lived with Mullins’ methodology, but not as interpreted by the attorney, he said.
The rate discussion is not settled. Commissioner Shannon Smith said the desire to modify the tiers to do more to encourage conservation has been talked about for years. The new ordinance charges the same base rate for 1 gallon of water and 10,000 gallons of water — $20.84 — while using up to 10,000 gallons a month adds just $10.68 to the bill. (Sewer is more expensive, and costs $37.55 plus $37.10 for 10,000 gallons.)
In addition to repaying its loan debt, staff has also encouraged the commission to raise enough funding to cover the cost of future repair and maintenance costs. This will be a part of upcoming budget discussions.
The new ordinance, which will come to the board for second reading May 24, raises the city’s placement among other local municipalities. Starke will charge residents $24.05 for 3,000 gallons of water, compared to $14.22 in Green Cove Springs, $15.50 in Lake Butler, $16 in Lawtey, $23.32 in Orange Park, $29.84 in Lake City and $39.02 in Hampton.
