The Hollywood Commission approved a new utility rate structure during a recent meeting. The new rates go into effect on October 1.
A new modified rate structure is being put into place for water and wastewater use. The City had a 15 tier structure but now it has a modified three tier structure.
It is designed to reward people who are careful about conserving water and it creates a financial incentive for those who have not being doing so. This allows customers greater control over the monthly bill — the charges for water increase as usage increases. The more water a customer consumes, the higher the rate they are charged, according to Joann Hussey, spokesperson for Hollywood.
The City’s stormwater rate has remained unchanged for more than ten years. The new rate will increase by $2.90.
The stormwater rate is increasing from $3.22 to $6.12. Stormwater rates, charges and fees will be updated each year based on the Florida Public Service Commission Annual Price Index.
All water customers will see slight increase in their monthly base rate. For seasonal customers who live in Hollywood less than 12 months a year, a minimum monthly base rate will be charged regardless of use. The base rate charges ensure a steady revenue stream from all users to fund the infrastructure necessary to provide the service.
The average single family residential customer’s monthly water usage is 600 cubic feet, about 4,500 gallons.
This means the average water customer will pay $25.32 a month, an increase of $1.69.
The average water and wastewater customer will pay $76.71 a month, an increase of $3.70.
Over the past five years, the City focused on maintaining the rate structure, while finding alternative solutions to operational cost increases. Making rate adjustments now allows the City to fund mandatory water and wastewater system upgrades needed to meet state and federal regulatory requirements, the renewal and replacement of aging equipment and infrastructure and to ensure the safety and reliability of the system.
Also, the South Florida Water Management District requires the City to employ a rate structure that promotes water conservation, according to City of Hollywood information.