2012

FLORIDA WATER RATE SURVEY

976 Lake Baldwin Lane Suite 204 Orlando, FL 32814

Phone 407 . 730 . 5944 Fax 407 . 730 . 5941

www.raftelis.com

The 2012 Florida Water Rate Survey represents the initial rate survey conducted by Raftelis Financial Consultants, Inc. (RFC) in Florida. RFC has conducted a national Water and Wastewater Rate Survey since 1996, and has done so in conjunction with the American Water Works Association (AWWA) since 2004. The 2012 Florida Water Rate Survey is intended to provide keen insight into water pricing practices currently utilized by publicly-owned utilities throughout Florida. While many utilities provide wastewater and reclaimed water services, the goal of this initial survey is focused on typical potable water bills and rate structures for more than 170 Florida public utilities. The respondents include small utilities serving a population of less than 10,000 to the largest utilities in Florida with service populations of 500,000 or more. The survey addresses a cumulative service population of over 13.8 million people throughout Florida. The survey results are sorted alphabetically by county and, thereafter, listed by the city or utility name. The rates shown are exclusive of utility taxes or outside-city rates for those jurisdictions that have such charges. Following this introduction is a discussion on why water rates differ along with a narrative summarizing the survey results. Also included are statistics such as the number of usage rate blocks, gallons included in the first usage block, revenue recovery from fixed charges, minimum water bill levels, etc. The survey table beginning on page 11 includes population information, water management district, residential monthly minimum water bill amount, and bill amounts for usage at 4,000 and 8,000 gallons. Water capacity (impact) fee charge information is also included in the survey table. We would like to thank all the participants in the 2012 Florida Water Rate Survey and extend a special thanks to Ken Small at the Florida League of Cities for his support on distributing the survey questionnaire. This survey was completed with the valuable assistance of Rocky Craley, Joe Williams, and Robin Chacko of Raftelis Financial Consultants. We hope that you will find these results informative and look forward to completing additional utility rate surveys in the future. Your suggestions or comments are welcomed regarding the Florida Water Rate Survey or any future survey. Sincerely, RAFTELIS FINANCIAL CONSULTANTS, INC.

CONTENTS Factors Affecting Rates

01

Mike Rocca, CMC

Tony Hairston

Overview of the Survey

04

Director of Florida Operations

Manager

Additional Results

08



2012 FLORIDA WATER RATE SURVEY

{ 01 }

FACTO R S A F F E CTING RATES This Florida Water Rate Survey is focused on publiclyowned utilities. Often utility infrastructure is the most valuable asset in many communities. The rates INFRASTRUCTURE REPLACEMENT essential in operations, maintenance, and renewal of the In prior decades throughout utility infrastructure investment. There are many factors Florida, utility capital fundthat have an effect on the level of utility rates; however, ing was primarily focused on meeting the demands of based on our experience, the following summarizes the growth. Much of the cost more salient factors affecting potable water rates. of providing infrastructure for growth could be mitigated by a combination of impact fees, developer contributions, and careful SOURCE OF SUPPLY expansion planning. With the aging of infrastrucThe source of most potable water in Florida is from unture, increases in regulatory requirements and the derground aquifer systems. However, the quality of water slowing of growth, communities are increasingly and level of treatment necessary to meet regulatory and concerned with both the upgrade and replacement public acceptance varies greatly throughout the state due of infrastructure. The burden of upgrading and to the various sources. For example, communities located replacing infrastructure is typically borne by existing inland often require lower levels of treatment compared customers through utility rate revenues. Moreover, to those along the coast with more brackish water. Even these capital costs are higher than the original cost communities with high quality water nearby may have due to inflation and the difficulty of replacing existregulatory limits to the amount of high quality water that ing piping compared to the original installation cost may be withdrawn through their consumption use peron undeveloped land. While these challenges are mits. Many communities are required to identify and plan growing, there is increasing pressure to maintain for alternative water supplies, with these alternatives being rates and avoid rate adjustments. Infrastructure much more expensive to treat than existing sources of replacement can often be delayed from one year to supply. Finally, depending on the location of the source of the next as budget pressures grow; however, such supply, an expensive transmission system may be required postponements generally create the need for larger to deliver potable water to the customer service area. rate increases in the future.

established by each community for utility service are

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2012 FLORIDA WATER RATE SURVEY

ACQUISITIONS AND CONTRIBUTIONS A significant number of Florida utilities were initially constructed to minimum standards by the primary land developer in order to support land sale activities. Many of these utilities were subsequently acquired by local governments at prices that included contributions made by existing customers. The inclusion of these customer contributions in the acquisition price was determined to be appropriate by a Florida Supreme Court ruling. These acquisitions together with costs incurred for upgrading the utility to municipal standards is another factor contributing to rate levels. CONNECTION DENSITY A common factor affecting both the capital and operating costs of utilities is the number of connections within their service area. Utilities such as compact cities with high densities enjoy certain economies due to factors such as shorter piping systems and less travel time for servicing the system and customers. This connection density factor should taken into consideration when comparing rates, particularly when the comparison involves a combination of county and city systems. REGULATORY STRINGENCY Water utilities must provide drinking water that is safe for its customers and meets reporting and testing requirements. Regulatory requirements such as the EPA Disinfection By-Products Rule (DBPR) affect various communities differently based on the source of its water supply, age of the distribution system, and other factors. Meeting DBPR and other regulatory requirements can require both capital and operating investments that lead to higher user rates. DECREASING PER CAPITA CONSUMPTION Many utilities are facing declining per capita potable water consumption due to multiple factors. Since most utility costs are fixed, communities need to increase rates to compensate for the loss in revenue from reduced usage. This issue is especially valid for those utilities that have been heavily reliant on inverted (conservation) rates as a cost recovery source. There are several reasons for decreasing per capita consumption including more water efficient appliances and irrigation systems installed during renovations or through utility incentive programs. Another recent cause for declining usage is the housing market and a large number of unoccupied homes and businesses, which is likely temporary in many communities, but has persisted longer than expected. Further contributing to declining consumption is increased awareness due to conservation outreach efforts. Utility customers are responding to ongoing conservation messages.

2012 FLORIDA WATER RATE SURVEY

WATER RESTRICTIONS Over the past several years, water shortages and watering restrictions throughout Florida have been declared at various levels by the water management districts. Water restrictions include limitations on days and hours of irrigation use, and announced water shortages are accompanied by pleas to reduce consumption by set percentage amounts. Since most utility costs are fixed and by definition remain constant regardless of certain deviations in demand, the effect of lower water sales due to water shortages tend to require higher rates to support those fixed costs. EFFICIENCIES Potable water rates are also dependent on the extent a community has been able to use technology and effective management to achieve a high level of service at the lowest possible cost. Most communities are reporting the ability to accomplish more while relying on fewer resources. For example, many utilities have implemented automated meter reading (AMR) systems to reduce operating costs and increase meter reading accuracy. Implementation of supervisory control and data acquisition (SCADA) technology can increase system monitoring capabilities while lowering operating costs. Other efficiencies that can affect rates include minimizing unbilled water and exploring wholesale arrangements to sell excess capacity. BUDGET POLICIES The full accounting of indirect costs within potable water utilities can vary tremendously among various communities. For city and county utilities, there are many supporting departments that may or may not be recognized in the budget process. Even when recognized, the cost of such support services may not be accurate. In one community such costs may be understated, while in others they may be overstated due to budget pressures. In addition, many communities include a payment in lieu of taxes (PILOT), payment in lieu of franchise fees (PILOFF), or simply a transfer to the general fund. The amounts and methodology of such transfers vary considerably, and have a direct effect on utility rates. POLITICAL ACTION The local political climate will have an effect on utility rates. Policymakers generally desire to have rates at a minimum level, or at least avoid rate increases while maintaining quality service. For example, if a community values redundancy in its service or extra protection for its water supply, then it may be willing to have slightly higher rates, if necessary. Often this must be accomplished by carefully planning occasional modest rate adjustments. Many communities in the survey indicated that rates are indexed annually to an inflation index or by an established inflation percentage. However, there is often very strong resistance to rate increases until utility assets begin failing or regulatory mandates dictate the implementation of costly upgrades. Localized political pressures will affect rates either directly or indirectly.

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2012 FLORIDA WATER RATE SURVEY

OV E RV I E W O F THE SURVEY The survey provides

A benchmark of 4,000 gallons per month is used as a represen-

data on 177 water

tation of indoor usage levels. This amount equates to average

service providers throughout Florida.

demand of 131 gallons per day. A secondary benchmark of 8,000 gallons, or 263 gallons per day, has also been used in order to provide additional information for higher levels of service. Most utilities measure metered water use in terms of gallon increments. Approximately 5% of surveyed utilities report metered water use in terms of hundreds of cubic feet (CCF) rather than thousands of gallons. For these utilities the usage rate data was calculated based on 5.35 CCF and 10.70 CCF of monthly usage which corresponds to 4,000 gallons and 8,000 gallons per month based on 748 gallons per hundred cubic feet. The distribution of monthly bills at 4,000 gallons from lowest to highest, along with the corresponding bill at 8,000 gallons of usage is shown in the Monthly Charge Comparison graph on the following page.

2012 FLORIDA WATER RATE SURVEY

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MONTHLY CHARGE COMPARISON As shown in this table, there is a wide distribution of residential water bills at the 4,000 gallons usage level. The average of all utilities surveyed is $20.55 per month. As previously noted, there are numerous reasons why utility rates are different among service providers. The monthly bill for each individual utility at 8,000 gallons is shown

MONTHLY CHARGE (in dollars)

directly above that same utility's data point at 4,000 gallons. The average monthly bill at 8,000 gallons is $32.24.

$ 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0

Average bill at 8,000 gallons = $32.24

Average bill at 4,000 gallons = $20.55 0

20

40

60

80

100

120

140

160

180

UTILITIES (sorted from lowest to highest at 4,000 gallons) 4,000 gallons

8,000 gallons

4,000 gallon avg.

40%

8,000 gallon avg.

SURVEYED UTILITIES BY POPULATION SIZE

70 36%

30%

32%

63

60

57 50

25%

40

20% 15%

16%

16%

28

29

30 20

10%

10

5%

0

0% O - 10,000

10,001-50,000

50,001 - 100,000

POPULATION SIZE

100,001 & above

NUMBER OF UTILITIES

PERCENTAGE OF UTILITIES

35%

The survey includes a distribution of utilities of various size and location. This table shows the distribution of surveyed utilities by population size.

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2012 FLORIDA WATER RATE SURVEY

SRWMD

RESPONDENTS BY WATER MANAGEMENT DISTRICT

4 utilities 2%

The consumption use permits for potable water use are governed by the five water management districts throughout

NWFWMD

Florida. The survey respondents by water management district are as follows:

SJRWMD

20 utilities 12%

55 utilities 31%

SFWMD

Northwest Florida Water Management District NFWMD, 20 utilities

Alligator Point Water Resources District, Bay County, City of Callaway, City of Chipley, City of Crestview, City of DeFuniak Springs, Destin Water Users, City of Fort Walton Beach, City of Marianna, City of Mary Ester, City of Monticello, City of Panama City, City of Parker, City of Sopchoppy, City of St. Marks, City of Tallahassee, Emerald Coast Utilities Authority, Liberty County, Okaloosa County, and South Walton Utility Company.

50 utilities 28%

SWFWMD 48 utilities 27%

South Florida Water Management District SFWMD, 50 utilities

Bonita Springs Utilities, Inc., Broward County, City of Boca Raton, City of Boynton Beach, City of Cape Coral, City of Clewiston, City of Cooper City, City of Coral Springs, City of Delray Beach, City of Ft Lauderdale, City of Hallandale Beach, City of Hollywood, City of Homestead, City of Labelle, City of Lake Worth, City of Lantana, City of Marco Island, City of Margate, City of Naples, City of North Bay Village, City of Ocoee, City of Pembroke Pines, City of Plantation, City of Pompano Beach, City of Port St. Lucie, City of Riviera Beach, City of St. Cloud, City of Stuart, City of Sunrise, City of West Palm Beach, City of Wilton Manors, Collier County, Florida Keys Aqueduct Authority, Glades Utility Authority, Martin County, Miami Dade County, Okeechobee Utility Authority, Orange County, Palm Beach County, Reedy Creek Improvement District, St Lucie West Services District, Toho Water Authority, Town of Davie, Town of Fort Myers Beach, Town of Highland Beach, Town of Hillsboro Beach, Town of Jupiter, Town of Medley, Village of Golf, and Village of Tequesta.

2012 FLORIDA WATER RATE SURVEY

Southwest Florida Water Management District SWFWMD, 48 utilities

Charlotte County, City of Auburndale, City of Bartow, City of Bowling Green, City of Bradenton, City of Brooksville, City of Clearwater, City of Crystal River, City of Davenport, City of Dunedin, City of Eagle Lake, City of Fort Meade, City of Frostproof, City of Inglis, City of Lake Alfred, City of Lake Wales, City of Lakeland, City of New Port Richey, City of Ocala, City of Oldsmar, City of Palmetto, City of Pinellas Park, City of Plant City, City of Punta Gorda, City of Sarasota, City of Sebring, City of St. Petersburg, City of Tampa, City of Tarpon Springs, City of Temple Terrace, City of Venice, City of Wauchula, City of Wildwood, City of Williston, City of Zephyrhills, Englewood Water District, Fort Myers Utilities, Hernando County, Hillsborough County, Hudson Water Works Inc, Lee County, Manatee County, Pinellas County, Town of Bronson, Town of Lake Hamilton, Town of Lake Placid, Town of Longboat Key, and Town of Zolfo Springs. St. Johns River Water Management District SJRWMD, 55 utilities

Brevard County, City of Apopka, City of Atlantic Beach, City of Barefoot Bay, City of Belleview, City of Bunnell, City of Casselberry, City of Clermont, City of Cocoa, City of Daytona Beach, City of DeLand, City of Eatonville, City of Edgewater, City of Eustis, City of Fernandina Beach, City of Fruitland Park, City of Green Cove Springs, City of Jacksonville Beach, City of Leesburg, City of Longwood, City of Maitland, City of Mascotte, City of Melbourne, City of Mount Dora, City of Orange City, City of Ormond Beach, City of Oviedo, City of Palatka, City of Palm Coast, City of Port Orange, City of Sanford, City of South Daytona, City of Tavares, City of Titusville, City of Umatilla, City of Vero Beach, City of West Melbourne, City of Winter Park, City of Winter Springs, Flagler County, Gainesville Regional Utilities, Indian River County, JEA, Lake Harney Water Association, Marion County, Orlando Utilities Commission, Seminole County, St. Johns County - Main System, St. Johns County - Ponte Vedra System, Town of Hastings, Town of Orange Park, Town of Penney Farms, Town of Ponce Inlet, Utilities Commission of New Smyrna Beach, and Volusia County. Suwanee River Water Management District SRWMD, 4 utilities

City of Alachua, City of Chiefland, City of Lake City, and City of Madison.

{ 07 }

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2012 FLORIDA WATER RATE SURVEY

AD D I T I O N AL R E S ULTS A table of the detailed survey results is provided at the end of this section. All utilities surveyed have a combination of a fixed monthly charge and a separate variable charge based on the amount of metered water use as their primary revenue generation mechanism. Most water management district consumption use permits require utilities to have a conservation rate structure (multiple variable rate blocks that are “inverted” or increase at higher usage amounts) to reduce water consumption. The survey identified that approximately 10% of utilities surveyed still lack a conservation rate structure. Certain other characteristics of surveyed utilities are detailed below.

FIXED PORTION OF WATER BILL AT 4,000 GALLONS Fixed cost recovery is an important indicator of financial strength, especially considering trends in declining water use. The following provides the percentage of fixed revenue as a percentage of the total bill at 4,000 gallons. It is important to note that the greater amount of revenue recovered from the fixed monthly charge, the greater the revenue stability but also the greater the burden on the low-end users. The survey results show that at 4,000 gallons of residential consumption, most utilities' fixed component is between 51% and 75% of the total charge.

110

57%

100

101

50%

90 80

40%

70 60

30% 20%

25%

50

44

40

10% 0%

30

12% 21 2% / 3 0% - 25%

20 4% 8

26% - 50%

51% - 75%

76% - 99%

100%

PERCENTAGE OF 4,000 GALLON BILL FROM FIXED CHARGE

10 0

NUMBER OF UTILITIES

PERCENTAGE OF UTILITIES

60%

2012 FLORIDA WATER RATE SURVEY

{ 09 }

FIRST BLOCK THRESHOLD The survey shows a significant variance among utilities with respect to the amount of usage (either gallons or cubic feet) included in the lowest consumption block. Most utilities reported 3,000 gallons (4.0 CCF) to 5,000 gallons in the first consumption block. It should be noted that there are 38 utilities that have some amount of usage included in their minimum charge; we have included that minimum amount of usage as their first rate block for survey purposes. The distribution of first block thresholds is provided in the graph below.

45

23%

40

41

25%

35

18% 20%

32 14%

15%

24

10% 10%

15% 27

7%

15

17

13 5%

10

3%

5

5

0% Uniform

25 20

10%

18

30

NUMBER OF UTILITIES

PERCENTAGE OF UTILITIES

30%

0

1,000

2,000

3,000

4,000

5,000

6,000

over 6,000

GALLONS IN LOWEST USAGE RATE BLOCK

NUMBER OF USAGE RATE BLOCKS Usage rate blocks for most utilities ranged from one to six with four being the most frequent number of rate blocks as illustrated in the graph below.

60

30%

30%

54

25%

50 22%

40

39

20%

30 15% 10%

10%

11%

18

19

13%

14%

23

24

20 10

5% 0%

0 Uniform

2 Blocks

3 Blocks

4 Blocks

NUMBER OF USAGE BLOCKS

5 Blocks

6+ Blocks

NUMBER OF UTILITIES

PERCENTAGE OF UTILITIES

35%

{ 10 }

2012 FLORIDA WATER RATE SURVEY

MONTHLY MINIMUM WATER BILL The median of surveyed minimum water bills (i.e. lowest

DETAILED SURVEY RESULTS BY COUNTY

possible residential bill) for all surveyed utilities is $11.33.

In the following pages, we have included

The distribution of the minimum water bills is as follows.

the detailed results of the survey sorted alphabetically by county. This information includes utility name, the utility’s water management district jurisdiction, estimated population served, effective

$15.01 +

date of existing rates, unit of measure-

39 utilities 22%

$10 or less 74 utilities 42%

ment (gallons or CCF), minimum charge expressed on a monthly basis, monthly residential bills at 4,000 and 8,000 gallons, and water capacity (impact) fees.

$10.01 - $15.00 64 utilities 36%

* In the following tables, NR stands for Not Reported.

NUMBER OF UTILITIES WITH ANNUAL RATE INDEX Many utilities report that rates are adjusted periodically by a rate index in order to compensate for the effects of inflation on expenses. Of the utilities that indicated an indexing status, 43% utilize an annual index (19 utilities did not indicate whether or not they utilize an index).

No Index 90 utilities 57%

Annual Index 68 utilities 43%

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2012 FLORIDA WATER RATE SURVEY

Florida Water Rate Survey 2012 County:

Alachua County Bay County

Brevard County

Broward County

Charlotte County

NR - Not Reported

Utility Name:

WMD:

Est Service Population:

Effective Date

Units

Minimum Charge

Gallons/CCF Monthly Bill included in @ 4,000 Minimum Bill Gallons

Monthly Bill @ 8,000 Gallons

Capacity Fee:

City of Alachua

SRWMD

9,900

9/1/2010 GAL

$7.90

0

$14.26

$22.54

$1,950.00

Gainesville Regional Utilities

SJRWMD

69,438

10/1/2011 GAL

$8.65

0

$16.85

$26.65

$1,000.00

Bay County

NWFWMD

6,100

10/1/2011 GAL

$8.40

0

$15.93

$23.71

$551.67

City of Callaway

NWFWMD

14,405

10/1/2011 GAL

$10.85

0

$25.34

$39.86

NR

City of Panama City

NWFWMD

36,484

10/1/2011 GAL

$6.40

0

$16.92

$27.44

$465.00

City of Parker

NWFWMD

4,317

10/1/2011 GAL

$8.03

0

$23.23

$38.43

$500.00

Brevard County

SJRWMD

8,000

10/1/2008 GAL

$12.32

3,000

$16.18

$31.62

$2,053.00

City of Barefoot Bay

SJRWMD

10,000

10/1/2008 GAL

$11.33

0

$22.49

$33.65

$335.00

City of Cocoa

SJRWMD

280,000

10/1/2011 GAL

$12.03

0

$22.03

$36.61

$1,750.00

City of Melbourne

SJRWMD

150,000

10/1/2011 GAL

$6.89

0

$23.85

$40.81

$1,116.00

City of Titusville

SJRWMD

53,000

10/1/2011 GAL

$8.39

0

$19.27

$34.26

$250.00

City of West Melbourne

SJRWMD

18,900

11/1/2011 GAL

$14.08

0

$34.73

$56.43

$3,804.00

Broward County

SFWMD

293,000

10/1/2011 GAL

$14.68

0

$21.18

$36.22

$1,440.00

City of Cooper City

SFWMD

29,000

10/1/2011 GAL

$11.24

0

$22.36

$34.77

$1,316.00

City of Coral Springs

SFWMD

12,000

10/1/2011 GAL

$32.00

0

$38.04

$46.68

NR

City of Ft Lauderdale

SFWMD

250,000

10/1/2011 GAL

$5.28

0

$13.70

$28.06

NR

City of Hallandale Beach

SFWMD

40,000

NR GAL

$21.00

0

$25.26

$30.65

NR

City of Hollywood

SFWMD

140,000

10/1/2011 CCF

$5.39

0

$17.58

$41.21

$1,130.00

City of Margate

SFWMD

58,233

10/1/2011 GAL

$11.26

0

$24.74

$39.90

NR

City of Pembroke Pines

SFWMD

150,000

10/1/2011 GAL

$12.31

3,000

$17.10

$36.26

$2,306.35

City of Plantation

SFWMD

85,056

10/1/2010 GAL

$11.06

0

$17.34

$26.76

$1,585.00

City of Pompano Beach

SFWMD

79,917

1/1/2011 GAL

$12.88

0

$21.84

$30.80

NR

City of Sunrise

SFWMD

220,000

10/1/2011 GAL

$15.20

0

$27.12

$39.04

$1,500.00

City of Wilton Manors

SFWMD

12,000

10/1/2011 GAL

$28.96

0

$43.12

$57.28

NR

Town of Davie

SFWMD

35,000

10/1/2011 GAL

$18.97

0

$31.49

$48.63

$3,050.00

Town of Hillsboro Beach

SFWMD

2,500

1/1/2011 GAL

$24.00

2,000

$30.80

$44.40

NR

Charlotte County

SWFWMD

142,411

4/1/2012 GAL

$21.77

0

$40.45

$61.23

$1,780.00

City of Punta Gorda

SWFWMD

36,305

10/1/2010 GAL

$7.03

0

$20.23

$33.43

$2,824.00

Englewood Water District

SWFWMD

17,300

1/7/2010 GAL

$15.62

0

$23.34

$32.34

$3,273.96 Page 1 of 6

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2012 FLORIDA WATER RATE SURVEY

County:

Utility Name:

WMD:

Est Service Population:

Effective Date

Units

Minimum Charge

Gallons/CCF Monthly Bill included in @ 4,000 Minimum Bill Gallons

Monthly Bill @ 8,000 Gallons

Capacity Fee:

Citrus County

City of Crystal River

SWFWMD

3,110

10/1/2012 GAL

$6.92

0

$17.76

$29.14

NR

Clay County

City of Green Cove Springs

SJRWMD

3,000

10/1/2011 GAL

$8.00

1,000

$12.53

$18.57

$1,000.00

Town of Orange Park

SJRWMD

8,500

10/1/2011 GAL

$13.76

0

$20.64

$29.24

$650.00

Town of Penney Farms

SJRWMD

741

NR GAL

$20.00

3,000

$21.50

$27.50

$650.00

City of Marco Island

SFWMD

27,912

10/1/2010 GAL

$30.83

0

$46.23

$61.63

NR

City of Naples

SFWMD

62,000

10/1/2011 GAL

$8.07

0

$13.31

$18.55

NR

Collier County

SFWMD

200,000

10/1/2011 GAL

$17.63

0

$27.31

$40.65

$3,205.00

Columbia

City of Lake City

SRWMD

20,000

10/1/2011 GAL

$14.54

0

$22.02

$32.32

NR

Duval County

City of Atlantic Beach

SJRWMD

23,000

10/1/2011 GAL

$8.97

0

$14.47

$24.23

NR

City of Jacksonville Beach

SJRWMD

21,000

3/1/2012 GAL

$8.93

0

$19.05

$32.29

$325.00

JEA

SJRWMD

864,263

10/1/2011 GAL

$12.60

0

$17.80

$25.70

$1,256.50

Escambia County

Emerald Coast Utilities Authority

NWFWMD

90,000

11/1/2011 GAL

$10.05

0

$18.25

$26.45

$1,395.00

Flagler County

City of Bunnell

SJRWMD

2,800

10/1/2011 GAL

$15.89

0

$37.17

$58.45

$2,112.00

City of Palm Coast

SJRWMD

75,180

11/1/2011 GAL

$13.94

0

$29.06

$45.29

$7,232.73

Flagler County

SJRWMD

110

10/1/2005 GAL

$28.88

0

$55.04

$81.20

$2,780.00

Franklin County

Alligator Point Water Resources District

NWFWMD

1,800

6/21/2003 GAL

$15.00

0

$23.00

$32.50

NR

Hardee County

City of Bowling Green

SWFWMD

2,900

10/11/2011 GAL

$11.24

4,000

$11.24

$17.64

$1,699.50

City of Wauchula

SWFWMD

6,500

10/1/2011 GAL

$9.69

3,000

$11.10

$19.43

NR

Town of Zolfo Springs

SWFWMD

1,827

4/15/2012 GAL

$10.15

0

$16.53

$29.30

NR

City of Clewiston

SFWMD

10,000

12/19/2005 GAL

$6.00

0

$21.64

$37.28

$1,133.00

City of Labelle

SFWMD

4,893

1/1/2012 GAL

$20.30

0

$30.82

$41.34

$2,760.00

City of Brooksville

SWFWMD

8,150

10/1/2011 GAL

$20.03

3,000

$22.25

$31.13

$672.00

Hernando County

SWFWMD

162,000

10/1/2012 GAL

$5.40

0

$9.48

$14.10

$1,147.00

City of Sebring

SWFWMD

16,023

10/1/2007 GAL

$8.14

0

$17.34

$26.54

$690.00

Town of Lake Placid

SWFWMD

2,593

10/1/2011 GAL

$13.80

0

$29.88

$46.32

$750.00

City of Plant City

SWFWMD

34,721

10/1/2011 GAL

$6.82

0

$13.26

$21.20

$790.00

City of Tampa

SWFWMD

560,000

10/2/2011 CCF

$1.50

1

$11.30

$24.30

$2,089.00

City of Temple Terrace

SWFWMD

31,000

6/1/2011 GAL

$5.76

0

$12.88

$20.00

$3,250.00

Hillsborough County

SWFWMD

479,525

6/1/2011 GAL

$12.03

0

$26.39

$44.32

NR

City of Vero Beach

SJRWMD

34,000

10/1/2009 GAL

$13.60

0

$16.92

$26.09

$1,499.00

Collier County

Hendry County Hernando County Highlands County Hillsborough County

Indian River County

NR - Not Reported

Page 2 of 6

{ 13 }

2012 FLORIDA WATER RATE SURVEY

County:

Utility Name:

WMD:

Indian River County

Indian River County

SJRWMD

Jackson County

City of Marianna

Jefferson County

City of Monticello

Lake County

City of Clermont

Est Service Population:

Effective Date

Units

Minimum Charge

Gallons/CCF Monthly Bill included in @ 4,000 Minimum Bill Gallons

Monthly Bill @ 8,000 Gallons

Capacity Fee:

100,000

10/1/1999 GAL

$9.05

0

$18.07

$29.18

$1,300.00

NWFWMD

10,000

11/7/2010 GAL

$9.00

0

$17.00

$25.00

$700.00

NWFWMD

3,000

6/10/2010 CCF

$5.00

0

$11.42

$17.83

$982.00

SJRWMD

33,000

5/14/2002 GAL

$5.48

0

$9.88

$14.28

$1,935.00

City of Eustis

SJRWMD

34,444

6/1/2012 GAL

$9.22

0

$16.90

$24.58

NR

City of Fruitland Park

SJRWMD

4,025

10/1/2011 GAL

$15.36

3,000

$16.51

$22.43

NR

City of Leesburg

SJRWMD

25,000

11/1/2011 GAL

$8.04

0

$11.64

$16.28

NR

City of Mascotte

SJRWMD

4,000

7/1/2011 GAL

$28.05

1,000

$38.05

$56.05

$1,816.00

City of Mount Dora

SJRWMD

30,400

4/1/2012 HCF

$5.59

0

$9.49

$13.47

NR

City of Tavares

SJRWMD

24,976

10/1/2011 GAL

$14.65

0

$19.56

$27.00

NR

City of Umatilla

SJRWMD

3,500

4/15/2008 GAL

$7.70

0

$14.74

$23.34

$2,174.51

Bonita Springs Utilities, Inc.

SFWMD

50,000

9/1/2010 GAL

$12.17

0

$26.81

$43.01

$2,600.00

City of Cape Coral

SFWMD

150,000

10/1/2011 GAL

$16.93

0

$32.17

$49.33

NR

Fort Myers Utilities

SWFWMD

62,289

10/1/2012 GAL

$8.74

0

$25.86

$52.67

NR

Lee County

SWFWMD

322,000

10/1/2011 GAL

$11.35

0

$23.15

$36.43

$2,440.00

Town of Fort Myers Beach

SFWMD

6,600

11/9/2011 GAL

$12.31

0

$32.55

$54.79

$1,254.60

Leon County

City of Tallahassee

NWFWMD

248,000

10/1/2010 GAL

$9.59

2,500

$11.74

$17.97

$630.00

Levy County

City of Chiefland

SRWMD

1,150

10/1/2010 GAL

$8.18

0

$18.46

$29.04

NR

City of Inglis

SWFWMD

1,400

11/12/2008 GAL

$27.00

3,000

$36.00

$72.00

NR

City of Williston

SWFWMD

2,900

10/20/2005 GAL

$6.00

0

$10.00

$14.60

$846.00

Lee County

Town of Bronson

SWFWMD

1,100

7/12/2004 GAL

$8.00

5,000

$8.00

$20.00

NR

Liberty County

Liberty County

NWFWMD

970

9/25/2005 GAL

$12.50

3,000

$14.35

$21.05

NR

Madison County

City of Madison

SRWMD

7,350

11/1/2006 GAL

$5.55

0

$11.35

$17.15

NR

Manatee County

City of Bradenton

SWFWMD

49,546

10/1/2011 GAL

$13.17

0

$22.69

$35.93

$824.00

City of Palmetto

SWFWMD

12,606

11/1/2011 GAL

$6.20

0

$22.08

$39.28

NR

Manatee County

SWFWMD

271,000

11/1/2011 GAL

$7.73

0

$15.17

$23.55

$1,970.00

Town of Longboat Key

SWFWMD

8,000

3/1/2012 GAL

$14.07

0

$22.83

$34.38

NR

City of Belleview

SJRWMD

5,000

10/1/2008 GAL

$9.41

0

$17.73

$26.47

$877.80

City of Ocala

SWFWMD

50,924

11/1/2011 CCF

$9.20

0

$13.05

$16.90

NR

Marion County

SJRWMD

70,000

1/4/2011 GAL

$13.17

0

$18.13

$23.93

$1,887.00

Marion County

NR - Not Reported

Page 3 of 6

{ 14 }

2012 FLORIDA WATER RATE SURVEY

County:

Martin County

Utility Name:

WMD:

Est Service Population:

Effective Date

Units

Minimum Charge

Gallons/CCF Monthly Bill included in @ 4,000 Minimum Bill Gallons

Monthly Bill @ 8,000 Gallons

Capacity Fee:

City of Stuart

SFWMD

17,000

10/1/2011 GAL

$11.71

0

$22.64

$33.02

$1,933.00

Martin County

SFWMD

87,853

10/1/2011 GAL

$15.73

0

$23.85

$31.97

$1,710.00

City of Homestead

SFWMD

60,512

4/9/2010 GAL

$7.01

0

$10.52

$14.96

NR

City of North Bay Village

SFWMD

7,137

10/1/2011 GAL

$16.51

3,000

$20.49

$36.41

NR

Miami Dade County

SFWMD

2,250,000

10/1/2011 CCF

$3.20

0

$5.84

$19.01

NR

Town of Medley

SFWMD

60,000

10/20/2010 GAL

$11.26

5,000

$11.26

$17.98

$1,000.00

Monroe County

Florida Keys Aqueduct Authority

SFWMD

73,269

5/1/2012 GAL

$13.27

0

$35.55

$62.97

$3,750.00

Nassau County

City of Fernandina Beach

SJRWMD

24,000

10/1/2011 CCF

$10.31

0

$16.28

$23.65

$1,931.00

Okaloosa County

City of Crestview

NWFWMD

23,000

12/13/1993 GAL

$9.00

2,000

$12.70

$20.25

$1,000.00

City of Fort Walton Beach

NWFWMD

20,000

10/1/2011 GAL

$8.06

2,000

$12.88

$24.64

$700.00

City of Mary Ester

NWFWMD

3,844

9/25/2008 GAL

$11.00

0

$21.55

$32.85

NR

Destin Water Users

NWFWMD

12,641

2/1/2012 GAL

$8.74

0

$16.26

$24.41

$1,880.00

Okaloosa County

NWFWMD

36,000

10/1/2011 GAL

$8.88

0

$18.59

$30.79

NR

Okeechobee County

Okeechobee Utility Authority

SFWMD

5,621

10/1/2010 GAL

$18.94

0

$37.40

$62.04

$845.00

Orange County

City of Apopka

SJRWMD

57,243

11/1/2011 GAL

$7.15

0

$12.47

$18.37

$2,535.00

City of Eatonville

SJRWMD

3,000

10/1/2011 GAL

$7.65

0

$40.72

$81.68

NR

City of Maitland

SJRWMD

16,479

10/1/2011 GAL

$7.51

0

$10.81

$15.97

NR

City of Ocoee

SFWMD

36,712

10/1/2011 GAL

$9.77

0

$14.05

$18.87

NR

City of Winter Park

SJRWMD

28,074

10/1/2010 GAL

$8.62

0

$12.30

$17.78

NR

Orange County

SFWMD

520,135

10/1/2011 GAL

$6.33

0

$10.84

$16.40

$1,950.00

Orlando Utilities Commission

SJRWMD

416,816

3/1/2009 GAL

$7.50

0

$10.48

$15.30

$1,930.00

Reedy Creek Improvement District

SFWMD

150,000

4/1/2012 GAL

$27.83

0

$32.66

$37.49

NR

City of St. Cloud

SFWMD

22,000

1/1/2012 GAL

$11.90

0

$16.29

$24.17

$2,558.84

Toho Water Authority

SFWMD

73,000

12/1/2011 GAL

$4.51

0

$8.23

$17.47

NR

City of Boca Raton

SFWMD

84,392

10/1/2011 GAL

$12.62

0

$15.58

$18.55

$5,195.00

City of Boynton Beach

SFWMD

102,512

10/1/2011 GAL

$10.76

0

$16.52

$22.28

$1,122.00

City of Delray Beach

SFWMD

65,000

10/1/2009 GAL

$15.72

3,000

$16.97

$21.97

NR

City of Lake Worth

SFWMD

48,000

10/1/2011 GAL

$17.25

0

$28.37

$45.49

$3,416.00

City of Lantana

SFWMD

10,000

10/1/2011 GAL

$19.40

0

$24.20

$30.86

$1,511.00

City of Riviera Beach

SFWMD

30,000

10/1/2011 GAL

$12.47

0

$22.71

$32.95

$3,500.00

Miami Dade County

Osceola County Palm Beach County

NR - Not Reported

Page 4 of 6

{ 15 }

2012 FLORIDA WATER RATE SURVEY

County:

Palm Beach County

Utility Name:

WMD:

Est Service Population:

Effective Date

Units

Minimum Charge

Gallons/CCF Monthly Bill included in @ 4,000 Minimum Bill Gallons

Monthly Bill @ 8,000 Gallons

Capacity Fee:

City of West Palm Beach

SFWMD

51,000

10/1/2011 CCF

$19.43

0

$31.47

$43.50

$2,190.00

Glades Utility Authority

SFWMD

25,051

10/1/2011 GAL

$18.64

0

$27.81

$48.75

$2,650.00

Palm Beach County

SFWMD

532,000

10/1/2011 GAL

$11.42

0

$15.98

$26.18

$4,950.40

Town of Highland Beach

SFWMD

3,600

2/1/2010 GAL

$15.00

$23.60

$32.20

NR

Town of Jupiter

SFWMD

80,000

11/1/2009 GAL

$18.28

0

$22.82

$28.20

$4,153.36

Village of Golf

SFWMD

2,000

1/1/2011 GAL

$29.58

10,000

$29.58

$29.58

NR

Village of Tequesta

SFWMD

6,000

10/1/2011 GAL

$13.77

0

$22.53

$31.29

NR

City of New Port Richey

SWFWMD

10,500

10/1/2011 GAL

$10.03

$19.67

$31.49

NR

City of Zephyrhills

SWFWMD

19,174

10/1/2010 GAL

$3.16

0

$8.84

$14.52

$641.00

Hudson Water Works Inc

SWFWMD

5,915

3/1/2011 GAL

$9.19

0

$18.43

$32.69

$1,200.00

City of Clearwater

SWFWMD

110,000

10/1/2011 GAL

$16.30

3,000

$22.90

$49.30

NR

City of Dunedin

SWFWMD

40,000

10/1/2010 GAL

$13.08

0

$28.44

$49.56

$1,961.00

City of Oldsmar

SWFWMD

13,532

10/1/2011 GAL

$12.25

1,000

$28.66

$50.54

NR

City of Pinellas Park

SWFWMD

48,970

9/1/2011 GAL

$19.62

3,000

$26.16

$52.32

NR

City of St. Petersburg

SWFWMD

336,068

10/1/2011 GAL

$9.50

0

$23.30

$39.16

$584.00

City of Tarpon Springs

SWFWMD

23,996

10/1/2011 GAL

$12.51

0

$21.95

$38.44

$1,895.00

Pinellas County

SWFWMD

121,000

10/1/2011 GAL

$3.35

0

$22.47

$41.59

$352.00

City of Auburndale

SWFWMD

26,484

10/1/2010 GAL

$8.86

4,000

$8.86

$15.26

$1,264.99

City of Bartow

SWFWMD

16,959

NR GAL

$8.88

0

$17.08

$26.78

NR

City of Davenport

SWFWMD

4,200

11/10/2011 GAL

$9.75

3,000

$11.50

$18.50

$1,700.00

City of Eagle Lake

SWFWMD

5,000

11/1/2011 GAL

$11.80

4,000

$11.80

$19.80

NR

City of Fort Meade

SWFWMD

5,900

10/1/2009 GAL

$5.00

0

$12.60

$21.00

NR

City of Frostproof

SWFWMD

3,009

10/1/2010 GAL

$13.97

3,000

$16.15

$24.87

NR

City of Lake Alfred

SWFWMD

6,975

10/1/2011 GAL

$12.75

6,000

$12.75

$14.75

$1,285.27

City of Lake Wales

SWFWMD

29,326

11/1/2011 GAL

$5.66

0

$14.62

$25.95

$1,853.00

City of Lakeland

SWFWMD

167,777

10/1/2011 GAL

$7.49

0

$14.53

$21.97

$1,050.00

Town of Lake Hamilton

SWFWMD

1,400

5/1/2009 GAL

$15.50

0

$27.50

$40.25

NR

Putnam County

City of Palatka

SJRWMD

12,000

10/1/2011 GAL

$15.41

4,000

$15.41

$20.73

NR

Sarasota County

City of Sarasota

SWFWMD

55,000

9/1/2011 GAL

$13.76

0

$24.88

$37.96

NR

City of Venice

SWFWMD

21,000

4/1/2012 GAL

$18.15

$38.09

$66.78

$1,210.00

Pasco County

Pinellas County

Polk County

NR - Not Reported

Page 5 of 6

{ 16 }

2012 FLORIDA WATER RATE SURVEY

County:

Seminole County

St Johns County

St. Lucie County

Utility Name:

WMD:

Est Service Population:

Effective Date

Units

City of Casselberry

SJRWMD

55,000

10/1/2011 GAL

City of Longwood

SJRWMD

20,000

City of Oviedo

SJRWMD

41,713

City of Sanford

SJRWMD

City of Winter Springs Lake Harney Water Association

Minimum Charge

Gallons/CCF Monthly Bill included in @ 4,000 Minimum Bill Gallons

Monthly Bill @ 8,000 Gallons

Capacity Fee:

$6.76

0

$12.23

$19.83

NR

2/1/2011 GAL

$6.30

0

$11.90

$17.50

$1,449.00

2/1/2009 GAL

$10.02

0

$14.36

$21.76

NR

51,000

10/1/2012 GAL

$9.76

2,000

$13.56

$22.32

$1,343.00

SJRWMD

35,996

10/1/2011 GAL

$5.43

0

$10.51

$15.59

NR

SJRWMD

700

4/15/2010 GAL

$15.00

0

$22.50

$40.50

$850.00

Seminole County

SJRWMD

154,752

10/1/2011 GAL

$11.46

0

$15.34

$19.22

$1,053.50

St. Johns County - Main System

SJRWMD

79,005

10/1/2011 GAL

$11.91

0

$24.03

$38.40

$1,878.58

St. Johns County - Ponte Vedra System

SJRWMD

26,163

10/1/2011 GAL

$12.67

0

$18.35

$24.93

$1,878.58

Town of Hastings

SJRWMD

756

5/1/2012 GAL

$32.74

0

$55.62

$78.50

NR

City of Port St. Lucie

SFWMD

185,000

10/1/2011 GAL

$9.00

0

$23.28

$40.80

$1,690.00

St Lucie West Services District

SFWMD

15,500

10/1/2009 GAL

$15.42

0

$29.30

$43.18

$1,545.00

Sumter County

City of Wildwood

SWFWMD

4,000

10/1/2011 GAL

$6.07

0

$10.31

$15.61

$1,043.39

Volusia County

City of Daytona Beach

SJRWMD

88,000

10/1/2011 GAL

$8.59

0

$25.47

$42.35

$979.00

City of DeLand

SJRWMD

40,000

10/1/2011 GAL

$11.87

0

$19.55

$27.23

NR

City of Edgewater

SJRWMD

25,000

1/1/2012 GAL

$10.21

0

$21.77

$40.61

NR

City of Orange City

SJRWMD

10,500

10/1/2010 GAL

$8.54

0

$19.06

$30.39

$900.00

City of Ormond Beach

SJRWMD

50,000

10/1/2010 GAL

$11.79

2,000

$17.99

$31.55

$2,276.08

City of Port Orange

SJRWMD

70,000

6/24/2009 GAL

$9.90

0

$17.20

$29.60

$1,555.00

City of South Daytona

SJRWMD

13,000

6/1/2011 GAL

$13.00

1,000

$28.00

$48.45

$625.00

Town of Ponce Inlet

SJRWMD

3,000

4/1/2009 GAL

$12.00

2,000

$21.10

$39.30

NR

Utilities Commission of New Smyrna Beac SJRWMD

23,813

10/1/2010 GAL

$11.65

0

$15.68

$22.08

NR

Volusia County

SJRWMD

36,370

6/1/2011 GAL

$11.67

0

$18.67

$26.99

$375.00

City of Sopchoppy

NWFWMD

8,750

1/1/2002 GAL

$18.00

3,000

$21.00

$33.00

NR

City of St. Marks

NWFWMD

295

1/1/2012 GAL

$21.81

3,000

$24.57

$35.61

NR

City of DeFuniak Springs

NWFWMD

4,000

10/1/2010 GAL

$12.13

2,000

$17.25

$27.58

$1,275.00

South Walton Utility Company

NWFWMD

20,000

10/1/2011 GAL

$8.00

0

$14.16

$21.13

$2,800.00

City of Chipley

NWFWMD

2,000

10/7/2011 GAL

$11.94

2,000

$16.34

$25.46

$778.46

Wakulla County Walton County Washington County

NR - Not Reported

Page 6 of 6

2012 FLORIDA WATER RATE SURVEY

{ 17 }

The 2012 Florida Water Rate Survey includes information for more than 170 utilities throughout Florida, each with its own unique characteristics including rate structures that vary in complexity and cost. This document includes highlights from the survey and illustrates why rates may differ among communities. We hope the survey provides a resource for utilities to compare themselves with their peer communities throughout Florida, and to stay abreast of industry trends.

ABOUT RAFTELIS FINANCIAL CONSULTANTS, INC. Raftelis Financial Consultants (RFC) is one of the largest and most respected utility financial, rate, and management consulting practices in the nation, with more than 35 consultants in our five offices located in Orlando, FL; Charlotte, NC; Kansas City, MO; Pasadena, CA; and Cary, NC. RFC provides a variety of financial, rate, and management consulting services for water, wastewater, and stormwater utilities including: • Cost of Service and Rate Studies • Debt Issuance/Bond Feasibility Support • Financial and Capital Improvements Planning • Dispute Resolution/Litigation Support • Stormwater Program Development • Valuation • Management/Organizational Assessments and Audits • Procurement Assistance

RFC conducts and/or publishes several of the water utility industry's leading rate surveys, some of which are co-published by various industry associations, including: • Water and Wastewater Rate Survey, co-published with the American Water Works Association (AWWA); • Utility Financial Information Survey, published by the Association of Metropolitan Water Agencies (AMWA); • California-Nevada Water Rate Survey, co-published with the CA-NV AWWA; • Water and Wastewater Residential Rate Survey, published by the Water Infrastructure Finance Authority of Arizona; and • Florida Water Rate Survey. The RFC Florida office is located in Orlando and is managed by Mike Rocca and Tony Hairston who have a combined 47 years of experience serving municipal utilities throughout Florida. Should you have any questions or need additional information regarding either the national or Florida rate survey, please feel free to contact Mike Rocca (407.271.4775 or mrocca@raftelis. com) or Tony Hairston (407.730.6136 or [email protected]). For more information about RFC, please visit www.raftelis.com.

976 Lake Baldwin Lane, Suite 204, Orlando, FL 32814 Phone 407 . 730 . 5944 Fax 407 . 730 . 5941 www.raftelis.com