Some not adjusted since 1953
Jay residents will see an increase in their utility bills in the next year after the Jay Town Council unanimously approved a recommended increase in water and wastewater rates and electricity public service tax Monday night.
The increase in water rates is based on a recommendation by the Florida Rural Water Association as a result of a rate study done for the town. Rate increases are allowed by the Florida Public Services Commission in an effort to keep up with inflation and the cost of providing public services to municipalities. The last rate increase was in 2011, although no fee amounts were included in the rate increase ordinance.
Once the water rates are set following an amendment to the rate change ordinance, the rates will increase by 1.8 percent each year for three years. Commercial rates begin with an allowance of 4,000 gallons of water and wastewater per month and residential rates begin with an allowance of 2,000 gallons of water and wastewater per month. Fees are added when the amount used exceeds that number of fixed base gallons allowed.
For example, the fixed rate for a residential service currently is $12.00 for water and $18.00 for wastewater for up to 2,000 gallons. The new rate, for the same amount of water, will be $20.25 for water and $21.21 for wastewater. For every 1,000 gallons beyond 2,000 a fee of $7.45 will be added and for every 1,000 gallons of wastewater beyond the 2,000 gallons a fee of $8.42 will be added.
The current commercial water fee for 4,000 gallons is $14.40 and beyond 4,000 gallons will be an additional $8.42. The current commercial wastewater base is $21.75 for 4,000 gallons and will be an additional $9.40 for more than 4,000 gallons.
Residents who live outside Jay town limits will pay an additional 25 percent, set by a Florida state statute. The resolution setting the new rates each year will not include specific numbers, but will be designated by an amendment setting the increases and fees.
In a motion made by Councilwoman Jane Hayes and seconded by Councilman Wayne Godwin, the motion carried.
The tax rate increase for electricity will affect Escambia River Electric Cooperative (EREC) customers within the town of Jay limits and is based on Municipal Public Service Tax (MPST) calculations.
Operations Manager Eric Seib said the current ordinance setting the 10 percent service tax on electricity with a cap of $3 was written in 1953.
For example, a residential $143 electric bill will increase by 10 percent, or $14.30, to $157.30. In 1953, it would have increased to $146, reflecting a $3 cap.
For some 50 phase 3 (high use) commercial accounts in Jay, the cap will reflect 10 percent on the first $2,500, 2 percent on the next $2,000 and 1 percent on the excess of those. The amount of revenue generated annually by this increase will give the town a possible $138,897.60 annually, according to calculations.
“What was $3 back in 1953 is $27.80 today, with inflation taken into account,” said Seib. “Taking off that $3 cap will help us build a reserve so we can make repairs to the town's infrastructure. We are being proactive in finding funding to make the necessary changes. It's a win-win situation.”
Seib said Jay has a $1.5 million water system and because no reserve was ever put in place since 1953 for maintenance and repairs, this tax revenue is a way the town can supplement grants to get the old cast iron pipes replaced and address water issues in Jay.
Jay Attorney Steve Cozart agreed to write an amendment to the current rate ordinance that will reflect adjustments, including fees for delinquent bills and cut off time frames, which he will draft and have for review at the next council meeting.
“If there are any changes, we can talk about them at the next meeting,” said Cozart. “If there are no changes, we can a resolution to put the increase in place.”
Once the town publicizes the electricity tax increase, there will be a 120-day period for the Florida Public Service Commission to enact before it will be mandatory.
In a motion made by Councilwoman Jane Hayes and seconded by Councilman David Bush, the motion carried.
The next Jay town council meeting will be at 6 p.m., Monday, Aug. 20 at Jay Town Hall.
