Title
Water/Wastewater Extensions Funded by Surcharge Proceeds (B)
Explanation
Effective October 1, 2001, GRU began collecting a 25 percent surcharge on connection charges for customers connecting to the water and wastewater system outside of the City Limits. On July 28, 2003, the City Commission passed Resolution 030223 specifying that one half of surcharge monies from this source would be used to extend water, wastewater, and reclaimed water services within the City. Further, the resolution specified that 20 percent of the available funding would be used to address public health, safety, and environmental issues, 20 percent to be used to serve affordable housing, and 60 percent to be used for programmed water and wastewater extensions with the initial projects to be water service in low and moderate income areas. Use of this funding source was limited to funding facilities that are owned and maintained by the City (not to include any required plumbing retrofits on private property).
During the tenure of the previous City Manager, the City Manager and the General Manager of Utilities had agreed to develop a policy to administer the use of the surcharge proceeds including leveraging them with other grant funding sources. The policy was not developed prior to the departure of the previous City Manager, and the need for a comprehensive policy is becoming more important as surcharge funds continue to accumulate to extend water and wastewater facilities.
General Government staff (with the assistance of utility staff) have initiated discussions to develop appropriate programs to systematically extend water and wastewater service within the City, starting with low income areas. Unfortunately, on-site plumbing retrofits required in each home are believed to be a significant barrier to low income residents connecting to water, even if all other costs are paid by available funding. Since 2003, City Staff has sought other sources of grant funding to pay ...
Click here for full text