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4'A' <br />Departmental Item <br />Indian River County, Florida <br />Department of Utility Services <br />Board Memorandum <br />Date: August 14, 2024 <br />To: Indian River County Board of County Commissioners <br />Through: John A. Titkanich, Jr., County Administrator <br />From: Sean C. Lieske, Director of Utility Services <br />Prepared by: Bryan Beavers, Utilities Finance Manager <br />Subject: Presentation of the Utility Fee and Rate Modification Study for the Indian River County <br />Department of Utility Services, IRCDUS Project ID: 00.23.544 <br />Background: <br />Indian River County Department of Utility Services (IRCDUS) operates as an enterprise fund with its primary <br />source of income being service fees and usage (volume) charges from its customers. Additional funding <br />comes from miscellaneous charges. Since 1999, IRCDUS service fees and volume charges have <br />cumulatively increased approximately 12% over a 25 -year period. Other miscellaneous fees have not been <br />adjusted over this same 25 -year period. In contrast, the U.S. Water & Sewerage CPI rate has cumulatively <br />increased 210% during this same 25 -year period. <br />Year of Rate <br />Change <br />Average Residential <br />Monthly Charge <br />IRCDUS Rate % <br />Change Since 1999 <br />US Water & <br />Sewerage CPI <br />Change Since 1999 <br />1999 <br />$45.38 <br />12% <br />210 <br />2019 <br />44.59 <br />2020 <br />45.24 <br />2021 <br />46.63 <br />2022 <br />48.03 <br />2023 <br />50.67 <br />Due to the utility rates not changing at the same pace as inflationary price increases, IRCDUS rates are no <br />longer able to sustain the financial funding requirements of IRCDUS and need to be evaluated to ensure <br />the adequacy and equitability of rates to sustain the long-term financial needs of IRCDUS. To address this <br />need, formal bids were solicited through an RFP process to engage a Utility Rate Consultant to analyze <br />and make recommendations to update the charge rates of IRCDUS. On November 7, 2023, the Indian River <br />County Board of County Commissioners (BCC) awarded a purchase order to Stantec Consulting Services, <br />Inc. (Stantec), to perform this Utility Rate Study. <br />1 <br />