At its April 21 meeting, the City Commission will hold a second vote on a proposed ordinance that will implement a revised rate structure for drinkable water and wastewater charges, effective May 1, 2009. Press reports, however, about the amount of the increase and how it will be applied have been misleading.
Much like a telephone, electrical or gas bill, the City’s typical customer bill is made up of two charges; the base charge and commodity charges. The base charge covers the costs associated with bringing the dial tone, power or gas to the customer’s home and, in the case of Boynton Beach Utilities, water to the customer’s home. Everyone pays the same base charge. What makes up the commodity charge in customers’ bills for all these services will vary according to the number of toll calls that are made, the amount of electricity and gas that are used, and the amount of water that flows from the tap.
In the new rate structure, the bill of a typical 5,000 gallon residential customer will increase from $37.27 a month to $49.82, or approximately 33 percent; not 122 percent as has been reported. The 122 percent increase is in the base rate only, which is set to increase from $4.84 to $10.77. It is not on the entire bill. This breaks down to new base and commodity charges of $10.77 and $39.05, respectively. The commodity charges include a sewer base charge, charges for the amount of water and sewer actually used, a fixed storm water charge and a utility tax.
Typical average rates will be as follows:
Consumption/Mo Old New
3,000 $26.17 $37.81
5,000 $37.27 $49.82
7,000 $38.57 $51.81
10,000 $43.38 $57.57
15,000 $54.73 $71.17
20,000 $66.08 $94.77
Water use restrictions put in place by the South Florida Water Management District, and the way we use water; a faltering economy that has affected residential and commercial development; and a rise in the cost of the materials necessary to ensure delivery of pure, clean drinking water have all contributed to the need to revise the rate structure. The Utilities Department has already deferred approximately 20 percent of its annual Capital Improvement Program to later periods in order to minimize the impact of a rate increase.When compared with neighboring communities, even with the rate increase, water in Boynton Beach will still cost less than in Lake Worth and Delray Beach.
I find the water increase at the same time as the pension given to the commissioners deplorable. The commissioners ran for these jobs, knowing that they didn’t come with pensions, and decided to vote one in for themselves, even going back in time to pick up the years Taylor first became one. If you can afford to do this to the citizens of Boynton Beach, then you didn’t need to raise water rates. Also, other options were available, such as downsizing employees and not giving raises.
By: ann on April 22, 2009
at 9:09 am
It looks like my bill has gone up by $14. That’s quite a jump for someone who routinely uses less than 1,000 gallons a month.
By: Ken Okel on May 27, 2009
at 3:47 pm
It is important to note that the new rates align the base charges with fixed costs and the commodity charge with the amount of water you consume. This brings the two components of the charges in line with the distribution of fixed and variable costs. This will result in sufficient income to cover projects and project costs in FY2010 and meet debt service coverage requirements in FY2009 and 2010.
By: Wayne on May 28, 2009
at 11:40 am