| | | | | | | |  | Presentations
5.2.
City of North Miami Beach
17011 NE 19 Avenue
North Miami Beach, Fl 33162
305-947-7581
www.citynmb.com |
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| | | | | | | | | TO: | Mayor and City Commission
| | FROM: | City Manager, Arthur H. Sorey, III | | VIA: | Sam Zamacona, Deputy Director of NMB Water
Andrea Suárez Abastida, Director of NMB Water | | DATE: | August 16, 2022 |
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| | | | | | | | | RE: | Approved Rate Increases - Ordinance 2019-04 (Andrea Abastida Suarez, NMB Water Director) |
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| | | | | | | | Description
| | BACKGROUND ANALYSIS:
| Following completion of a Water and Wastewater Master Plan in August 2017, along with a condition and operational assessment, NMB Water identified and established the scope of capital and operational projects needed to maintain and provide excellent water and sewer utility services.
In 2018, a Financial Consultant, Bartle Wells Associates, was contracted to provide a Financial Plan and assist with the rate setting process to ensure the cost for the Capital Improvement Projects (CIP) was properly funded. To ensure proper funding for CIP, NMB Water opted and the City approved to apply to the Water Infrastructure Finance and Innovation Act (WIFIA) and bonds. The Consultant recommended the need to increase rates to support the WIFIA and bond financing and debt service coverage. | RECOMMENDATION:
| The City shall maintain rates to provide Net Revenues at all times to pay in each fiscal year 120% of the current annual debt service, therefore, we are respectfully requesting the Mayor and the City Commission abide with the already codified Ordinance 2019-04, which will continue to provide NMB Water with a feasible option to obtain operational and financial sustainability to continue an efficient and high-quality service to all our customers. | FISCAL/ BUDGETARY IMPACT:
| Water and Sewer Enterprise fund |
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