Local Government County Commission Votes to Raise Wastewater Impact Fees

BRADENTON — They are called Wastewater Facility Investment Fees, and they are designed to cover the infrastructure cost for bringing sewers to new developments. At Tuesday's meeting, Manatee County Commissioners were faced with adjusting for the rising cost of this infrastructure after almost a decade of lax fees.

At a January 20, 2015 work session, commissioners heard the news from Robert J. Ori of Public Management Resources Group Inc., the County's Utility Rate Consultant. Ori said, "It has been nine years since you have adjusted the Sewer Facility Investment Fees."

It is the policy of the board that any and all capital costs required to support growth in the utility infrastructure be paid for by Facility Investment Fees (FIFs) collected from new utility connections.

Ori presented the board with a graph displaying the new recommended wastewater Facility Investment Fees and revised retail wastewater Facility Investment Fees for all meter sizes and customer classifications.

Back at the January work session, Ori told the BOCC that tens of millions of dollars had not been collected over the last nine years; but could have if accurate assessments had been made. 

Ori's proposed increase is an additional $712, per single residential property. That would take the cost from $2,315.00 to $3,027.00 per home.

Critics have claimed for years that the wastewater fees—as well as school and other impact fees—have been insufficient if the goal is to collect the actual cost of new infrastructure in the county.

The county now stands the possibility of losing tens of millions of dollars more by waiting until October 1, 2015 to reinstate the new amount.

Those new developments approved before the October date—which was announced by County Administrator Ed Hunzeker—will pay the inadequate amount, forcing taxpayers to ultimately foot the bill for the difference. 

Ordinance 15-22 also proposes some changes to the terms with respect to Time Payment Agreements. Current agreements charge an 8 percent annual interest rate. The proposed change would set the interest rate as follows:

• Prime Interest Rate plus 3 percent for all time payment agreements entered into during that year.

• Adopting the ordinance also changes the maximum time frame for repayment from 15 years to 10 years.

Ordinance 15-22 was approved by the board unanimously, with Commissioner Bustle absent.