Dunedin City Commission Workshop: May 6, 2025 – Water Rate Study, Proclamations, and Memorial
Dunedin City Commission Workshop – May 6, 2025
The Dunedin City Commission held a workshop on May 6, 2025, to recognize several civic weeks and the City Hall Gallery artist, and to discuss the results of the Water & Wastewater Utility Revenue Sufficiency Study. The study, presented by Raftelis Consulting, recommended a phased rate increase over two years to address a projected deficit, capital needs of approximately $90 million, and technical default on debt service coverage. Commissioners expressed general support for the plan, emphasizing the need for clear communication and conservation incentives, and gave consensus direction to staff to proceed with the recommendations ahead of a first reading scheduled for May 22, 2025. The meeting also included a decision to lower the city flag in honor of former Mayor Manny Koutsourais, who recently passed away.
Presentations
- 56th Annual Professional Municipal Clerks Week Proclamation (May 4–10, 2025): Vice Mayor Gow read the proclamation honoring City Clerk Rebecca Schlichter and her office. Schlichter accepted on behalf of her team.
- National Public Works Week Proclamation (May 18–24, 2025): Commissioner Dugard proclaimed the week, emphasizing the role of public works. Director of Public Works Sue Bartlett accepted, inviting the public to the 2025 Public Works Equipment Rodeo on May 21 at Highlander Park.
- Water Safety Month Proclamation (May 2025): Commissioner Sandbergen read the proclamation, noting water safety statistics (e.g., 11 fatal drownings per day nationally). Aquatics Coordinator Alicia Castricone accepted and highlighted partnerships with Kiwanis and Dunedin Youth Guild to provide free swim lessons to 77 children this year.
- Historic Preservation Month Proclamation (May 2025): Commissioner Walker proclaimed the month, recognizing the Historic Preservation Advisory Committee. Chair Deborah Kynes accepted, thanking the Commission and noting committee member Vinny Luisi’s recent award from the Dunedin History Museum.
- Public Art Recognition – City Hall Gallery Artist Kirk Ke Wang: Strategy & Sustainability Manager Nicole Delfino and Arts Consultant Elizabeth Brincklow introduced artist Kirk Ke Wang, a professor at Eckerd College. Wang’s exhibit “Snow in September” commemorates 9/11, depicting tragedy and hope through four abstract seasonal paintings. Commissioners praised the artwork.
Workshop Discussion: Water & Wastewater Utility Revenue Sufficiency Study
City Manager Jennifer Bramley introduced the study as the first presentation to the Commission. The Water/Wastewater Fund is an enterprise fund, and the study was prompted by higher-than-anticipated operational cost increases due to inflation, leading to a projected deficit as early as FY2026. The study was previously presented to the Board of Finance on April 16, 2025.
Thierry Boveri of Raftelis Consulting presented the findings:
- Background & Issues: The utility serves about 12,000 water/wastewater connections and 4,000 reclaimed water customers. Infrastructure costs are non-linear; the City has invested $161 million at original cost ($382 million inflation-adjusted). Recent cost increases include a 26% rise in operating costs since 2019.
- Financial Plan: Total capital needs of $90 million over the next five years, with major projects including a $19.4 million wastewater treatment plant electrical rehab (bids opened that day), $7.8 million pipe lining, and $7.6 million reclaim storage tank. The plan assumes $30 million in new debt at a 5% interest rate (conservative, SRF loans may be lower).
- Recommendations: A two-year phase-in of rate increases for water and sewer, with annual inflationary adjustments afterward (projected ~$3/month after the first two years). The first-year increase for an average customer (4,000 gallons/month) is about $12/month (more for higher usage). Reclaimed water rates would increase from $0.50/1,000 gallons to $20/month for 10,000 gallons over three years, moving toward the regional average (~$19/month). A review of miscellaneous charges (e.g., meter set fees) is also recommended.
- Financial Metrics: The utility is facing a technical default in FY2025 on debt service coverage (minimum 1.15x for subordinate debt; current ratio is below). The recommended plan targets a 1.5–2.0 coverage ratio. Pay-go capital funding of $9.5 million annually is targeted. Cash reserves would meet the policy of 25% of operating expenditures plus $1M for capital.
- Rate Comparison: Current combined water/sewer rates are around the average of surveyed utilities; proposed increases would move Dunedin to the right of the average. Boveri noted that many peer utilities are also raising rates due to rising costs.
Commissioners asked detailed questions about reclaimed water pricing, SRF loan availability, cost allocation (including indirect costs like IT, insurance, and the administration building loan), personnel retention, and potential conservation impacts. Staff and consultants addressed concerns about affordability, noting the inclining-block rate structure for potable water and the existing surcharge for excessive reclaim use. Public input was opened but no one spoke.
Consensus Direction: The Commission gave consensus direction supporting the Raftelis recommendations. They requested additional information before the first reading on May 22, including:
- Clear comparison data on rates in comparable communities,
- A 10-year history of Dunedin’s water/sewer rates,
- Information on how regulations have driven cost increases,
- A projected total bill impact for water, sewer, stormwater, sanitation, and reclaimed (if applicable),
- Enhanced education and conservation messaging to help residents manage usage.
Commissioners expressed strong support for being proactive on infrastructure to avoid crisis scenarios like those in other communities, while acknowledging the burden on residents and the need for affordability and livability.
Key Outcomes
- Consensus Direction: The Commission approved the two-year phased rate increase plan for water, wastewater, and reclaimed water, as recommended by Raftelis. Staff will prepare final rate ordinances for first reading on May 22, 2025, with a second hearing on June 5, 2025, and implementation by October 1, 2025.
- Flag Lowering: The Commission directed to lower the city flag to half-staff in honor of former Mayor Manny Koutsourais, who recently passed away. The City Attorney will develop a formal policy for such recognitions.
- Reclaimed Water Rate Adjustment: Support for increasing reclaimed water rates to be closer to market levels, to reduce the burden on potable water/sewer customers.
- Next Steps: Staff to provide requested comparative and historical data; communications plan to be developed for public education on rate changes and conservation tips.
Meeting Transcript
Good morning and welcome to the May 6th, 2025 Commission workshop. Calling this meeting to order, and we're going to start with the Pledge of Allegiance from Jen, our city attorney. Thank you. I pledge allegiance to the Flag of the United States of America. One nation. Under God. Liberty and Justice. Okay, well, welcome everybody. And uh we're gonna go to presentations, which we're gonna start with 56 annual professional municipal service, or I'm sorry, municipal clerks week proclamation, and we'll go turn to Vice Mayor. Thank you very much, Mayor. I uh you know, sometimes as parents you end up saying I was I was born to uh to raise this child or whatever. Uh I'm I came here this morning and and this I'm blessed to read this. And when you talk about the city clerk's office so many times, that word clerk has this old-fashioned connotation to it, um, like secretary and things of that nature. Uh but that is far from the truth with the city clerk's office. They are such an integral part of the community that you for the four women that are standing before you, what they do and their connection between us and the community, the community and us, between the city commission and staff. And it's just it's just a a very well-balanced, efficient professional department. So I'm extremely proud uh to read this this morning. And it is the 56th Annual Professional Municipal Clerks Week, May 4th through May 10th. Whereas the Office of Professional Municipal Clerk, a time-honored and vital part of local government, exists throughout the world. And whereas the Office of the Professional Municipal Clerk is the oldest among public servants. And whereas the Office of Professional Municipal Clerk provides the professional link between the citizens, the local governing bodies, and agencies of government at other levels. And whereas professional municipal clerks have pledged to be ever mindful of their neutrality and impartiality, rendering equal service to all. And whereas the professional municipal clerk serves as the information center on functions of local government and community. And whereas professional municipal clerks continually strive to improve the administration of the affairs of the Office of Professional Municipal Clerk through participation in education programs, seminars, workshops, and the annual meetings of their state, uh, county and the international professional organizations. And whereas it is most appropriate that we recognize the accomplishments of the Office of the Professional Municipal Clerk. Now, therefore, I, Jeff Gao, by the virtue of the authority vested in me by the mayor of the city of Dunedin, and on behalf of this entire city commission, to hereby proclaim the week of May 4th through May 10th, 2025 as Professional Municipal Clerks Week, and further extend appreciation to our professional municipal clerk, Rebecca Schlichter, and to all the professional municipal clerks for the vital services they perform and their exemplary dedication to the communities that they represent. Thank you very much. Thank you, Vice Mayor, Mayor, Commissioners. So appreciate this. But really, this standing behind me, I could not do what I do on a daily, weekly, monthly, yearly basis without each of them. And so I get it's municipal clerks' week, but it's really our entire office that just I am so thankful and I'm thankful for each of you for the opportunity. So I appreciate that. Thank you so much. We're gonna get a picture here. We promise we're gonna get our agenda items in on time this week. We're gonna get our agenda items in on time this week. That's great. And I know the mayor's council, I think this week is gonna we're gonna be recognizing the clerks and honoring them for all they do because they are an integral part of everything, you know, protection of records and sunshine laws. So thank you. Okay, we're gonna go to recognition of 2025 National Public Works Week, and I will turn to Commissioner Dugard. Thank you, Mayor. First of all, I want to note an objection. I hate following Jeff on proclamations. He's a pro at this. And I'd like to ask, oh, here they come. I I was gonna invite all of you up. And I'm a little intimidated if you want to know the truth. Once again, there are three steps ahead of us. Yeah. Once again, that's right.
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