BY MARK J. CRAWFORD
Telegraph Editor
STARKE — Starke city commissioners are set to raise water and sewer rates again, having passed the ordinance on first reading March 15.
City Manager Drew Mullins presented the plan earlier this year, following up on a prior water and sewer rate study requested by the commission.
Residential water rates are simplified under the proposal, changing the usage tiers, with the first tier now being 0-2,000 gallons of water for $20.84 a month. This represents a small savings for those in this tier, according to Mullins. Every 1,000 gallons of additional usage will add $6 more to the bill.
Residential sewer rates have likewise been simplified. Customers will be charged 1.5 times their water bill for wastewater service.
Commercial rates remain somewhat complicated since the size of the meter determines the monthly charge. This can range from $21.71 a month for a 1-inch meter to $454.69 for an 8-inch meters. Each tier represents an increase over the previous base charge. Then there is a variable consumption charge based on gallons used, and each of these tiers is also increasing. There is a separate consumption charge for wastewater service. Overall, Mullins said it represents a 25% rate increase.
The ordinance eliminates the distinction between customers inside and outside the city limits. The latter was formerly charged more for these utilities.
Mullins proposal saves money for residents using 2,000 gallons of months or less, encouraging conservation. The combined water and sewer bill would be $52.10 compared to the current charge of $56.62.
Those using more would pay more. At 3,000 gallons the monthly combined charge increases from $60.60 to $67.10, and at 4,000 gallons the bill would increase from $64.58 to $82.10.
After examining one month’s bills, the manager’s office found that most water and wastewater residential and commercial customers consumed no more than 3,000 gallons per month. The majority are under 2,000 gallons.
A few months ago, Mullins pointed out that Starke is in the middle of the back when its water rates were ranked against other nearby municipalities, with Green Cove Springs being on the low end at $14.22 for 3,000 gallons and Hampton on the high end at $39.02.
Consulting with the city’s engineers and accountant, Mullins found the city needs $480,000 a year to cover debt from the sewer plant upgrade, $300,000 for annual maintenance and infrastructure, $250,000 a year to make up for revenue shortfall, and $150,000 a year to transfer from water and sewer into the general fund to cover general government costs. According to the city manager, this would raise more than $1.17 million in additional revenue.
Commissioner Danny Nugent was the only commissioner to vote against the ordinance, which was approved 3-1 on first reading. (Commissioner Shannon Smith was absent.) Nugent’s previously objected to placing the burden of paying for wastewater plant upgrades on customers, preferring to find budget cuts that could pay off the debt.
At the time, Commissioner Scott Roberts said the city has been behind in collecting revenue to support its utilities, whether it be vehicle and equipment purchases or infrastructure repair.
One result is that the city is under multiple consent orders from the Florida Department of Environmental Protection to address infrastructure failures that threaten public and environmental safety.
“How do you address a deficit without affecting rates?” Roberts asked.
Roberts said the proposal benefits the low-income and low-consumption customers.
Commissioner Shannon Smith agreed they are incentivizing conservation while improving the city’s economic position.
“We cannot keep operating in the red. It’s not fair to the citizens,” Smith said.
Utilities Director Scott Anaheim said there are no projected projects in place, because there is no funding for them. The rate increases are designed to allow the city to set aside money so he can implement his five-year capital improvements plan. This affects other departments’ plans as well. The city cannot proceed with street work if it doesn’t have money to take care of the utilities at the same time.
Costs will compound over time, Mullins said, as will concerns for public safety.
“So that’s the need for this. That’s the push for new rates. That’s the push for running it like a business,” he said.
Mullins elaborated on that on March 15 when Nugent asked about future rate increases, saying a good business anticipates increased costs of 3%-5% annually based on inflation, increased labor costs, etc.
The rate increase will be effective upon approval at the second reading.
Scholarship for health students
The Shirley Ann Brown Livingstone Scholarship is available for the 2022-2023 school year. Students must apply by April 30, 2022, to be considered for this coming fall and spring semesters.
This scholarship is for students going into any field of study related to medicine, including nursing, med research, cancer research or any other health-care-related field of study. The scholarship is provided in memory of the late Shirley Ann Brown Livingstone, a registered nurse who died from breast cancer.
Applications are available at the Santa Fe College Andrews Center, Bradford High School guidance office, North Florida Technical College and Starke City Hall.
For further information you, may contact Carolyn Brown Spooner at 904-964-5807.
