MARGATE – City residents Feb. 6 expressed concerns about an increase in their water and sewer rates they didn’t know was coming.
Resident Donna Taskin told the Board of Commissioners Thursday that raising rates 22% for many residents who are senior citizens living on fixed incomes is something they simply cannot afford.
“That is completely absurd when three-quarters of this town are senior citizens and you say you are for senior citizens,” she told commissioners. “It’s absurd we have to pay $820-something dollars for a water bill.”
Mayor Michael Collins said the city had “no choice” but to increase the rates to cover expenses of running the utility, which is required to be “self-liquidating.”
Collins said when the issue of raising rates was originally discussed he told Administrator Patrick Moran, “Absolutely not, we are not going to have an increase. We had a tax increase last year. The last thing we want to do is burden our taxpayers any further.”
Resident Robert Nodell also questioned the new rate increases, which he called “arbitrary.”
The need to raise rates was explained, but the process of changing rates was flawed. Had residents known their rates were going to increase, they may have spoken up during a public hearing on the ordinance revisions held Dec. 5, 2024. Instead, they were in the dark about the coming rate increase, which could be a violation of the state’s Sunshine Laws.
Municipalities are required to introduce an ordinance on first reading, advertise it, and then adopt the ordinance following a public hearing held at least 10 after introduction. That procedure was not followed and officials don’t know why.
Collins said Friday that he didn’t know where the breakdown in protocol occurred. He said he would talk to the clerk and administrator to find out where the city “slipped up.”
“I don’t know why or who did that. I didn’t know until you pointed it out,” he told our Downbeach.com reporter who brought the discrepancy to the board’s attention after the meeting.
The ordinance as introduced at the Nov. 21, 2024 meeting revised codes in Section 1 of Chapter 269 and did not recite the new rates. The ordinance published with the agenda only recited new requirements regarding mandatory service line replacements for new construction and house raisings, and the location of water pits at the curbline.
However, the ordinance adopted on Dec. 4, 2024, contained major revisions to Section 2, which set new rates starting Jan. 1.
The revisions raised the flat fee for sewer service to $520 from $450; and base rates for ¾-1-inch service lines to $300 from $230 for a maximum allowance of 120,000 gallons of water usage; $448 from $345 for 1.5-inch line for a maximum allowance of 180,000 gallons; $598 from $460 for a 2-inch line with a maximum of 240,000 gallons; $897 from $690 for a 3- to 4-inch line for a maximum of 360,000 gallons; and $1,794 from $1,380 for a 6-inch line for a maximum of 720,000 gallons.
Many residents were not aware that rate increases were being considered and may have been denied the opportunity to be heard on the issue before the commissioners voted on enacting the legislation.
The annual bills went out after the new year and are due by June. At the end of the summer, the city reads meters to calculate usage overages and bills ratepayers accordingly.
During last week’s meeting, Collins said the finance committee first discussed the need to raise rates to cover expenses of operating the utility on Nov. 6, 2024.
Although the commissioners said no to the idea of raising rates following a tax increase last year – the first tax increase in 10 years – they were advised that if they did not raise rates, the city would not have enough revenue to run the utility.
Collins said the city was faced with the choice of raising the rates incrementally each year going forward or going for a single rate increase that would cover expected operating costs over the next several years.
“We opted for one big one and held off raising rates every year,” Collins said.
Resident Steve Altman, who is a member of the city’s Advisory Committee, said residents have approached him asking if the increase was necessary because of the federal and state mandate that all lead or galvanized steel water service lines be replaced over a 10-year period, which will be costly. He said the city should consider sending a letter to rate payers explaining why their rates were being increased.
“My direction was that we should notify the residents to let them be prepared,” Collins said. “I was under the belief that was happening. It did not. I do not know why but I’ve had discussions with our administrator to figure out why that didn't happen. I agree the residents should have been made aware.”
Collins said the bills normally go out in March, but the city sent them early to give residents a little extra time to pay their bill.
Resident Dennis Gorniowski questioned the commissioners about the timeline for deciding that rates would be increased.
“Someone had to know last year that the rates were going up,” he said, asking if other capital projects could be eliminated to give taxpayers a break.
Downbeach.com received an email from Moran over the weekend apologizing for the “miscommunication and confusion,” noting the end of the calendar year is “particularly busy” for municipalities that are required to close out accounts and transfer funds between budget line items.
He cited “several unique challenges that diverted our attention,” he said.
“We are committed to addressing this issue and will reintroduce the matter at our next meeting to ensure that everything is clarified,” he wrote.
Moran noted that although costs have increased substantially, the rates have not gone up for five years and that Margate has the lowest utility rates in the area.
“We were not trying to hide anything, it was just an error,” he said.
Moran said the city would reintroduce the ordinance at the next meeting and go through the adoption process as required by state law.
“The plan is that city will start the process over, setting the rates and advertise for public hearing before adopting it. Any money already paid will be applied to the bills at the new rate. If we need to give any extensions, credits, or refunds, we will make the adjustments,” he said.
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