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310420 - PowerPoint Presentation

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310420 - PPT Presentation

            Report to Council Water System Fire Protection Charges     September 27 2011 A               Report to Council Water System Fire Protection Charges ID: 310420

county city charge fire city county fire charge protection hydrant utility system customers flagler water limits general pay fund

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Slide1

      Report to CouncilWater System Fire Protection Charges  September 27, 2011A       

Report to

Council

Water

System Fire Protection ChargesSlide2

What is “Water System Fire Protection”?HydrantsPumpsTanksLarge PipesMaintenanceSlide3

FIRE PROTECTIONWater distribution system capacity includes fire flowBenefits the community as a wholeCosts associated with capacity not included in water user feesHigh Service PumpsWater Storage TanksHydrantsLarger PipesSlide4

Methods for Utility to Recoup CostsInclude in customer user ratesRate increase for customersNon-utility customers do not payAdd a line-item charge on utility billAdditional monthly fee for customers onlyNon-utility customers do not payAd-valorem taxesTransfer from the General Fund (inside city limits)Invoice to County (outside city limits)Slide5

Current PracticeIn-city - Annual charge to the General FundCharge on a per-hydrant basis$145.00 per hydrant2011 – $ 496,045Outside city – Invoice Flagler CountyCharge on a per-hydrant basis$145.00 per hydrant2011 - $ 44,950Slide6

At-IssueFlagler County has chosen not to pay invoices since 2008!Total of Unpaid Invoices = $ 175,595Slide7

Why Now?Auditors have indicated we need to get this resolved and clear up the receivablesCity Council has requested we get it resolved, first by trying to work with the CountyCounty Administrator does not want it to be funded with County-wide tax dollarsOne option is a separate fire tax districtPaid only by those who receive the benefitThis option has been rejectedSlide8

HistoryITT-Palm Coast Utility Corporation / Flagler County Hydrant Agreement – Mod 1994Florida Water Services Corporation Rate Case Settlement – 1999 City of Palm Coast Purchase of Utility 20032006 Reinstated the Fire Protection System Fee and Based it on a per-Hydrant ChargeFlagler County Paid the Invoices in 2006 and 2007 totaling $81,490Slide9

Beginning with the 2008 invoice, Flagler County quit payingUnpaid balance = $175,595County Attorney: “… could you please advise your hierarchy and have the pending invoices for 2008, 2009 and 2010 withdrawn and send us something to that effect so our books are cleared… Then I suppose we have to deal with the 2006 and 2007 past payments that were not authorized, again if you concur with my research. The total is just under $82K. You can return the money to us with some cover document or we can proceed otherwise if you would prefer.”Meanwhile the City general fund has paid $2,835,040Slide10

RecommendationContinue to charge the General Fund for hydrants inside the City of Palm Coast on a per hydrant basis in accordance with existing rate resolutionAdopt new Resolution to add a monthly fire protection charge on each account outside the City limits$2.33 per monthInclude in Resolution, a monthly charge for past due amounts$2.28 per monthCharge will remain in effect for 4 yearsSlide11

ConclusionThe City utility system must recover the costs associated with providing fire protection to the communityWhile the tax-payers of the City have paid for those services, over the last 4 years the taxpayers of the County have notStaff recommends implementing a monthly fire protection fee to all accounts outside the city limitsCouncil desires not to have customers pay for past due amountsSlide12

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