St. Augustine Record lead story today, with banner headline on page one: "Commission votes in favor of utility study"

Commission votes in favor of utility study
Study to look at impacts of different rate structure, eliminating surcharge
Posted: May 13, 2014 - 11:38pm

By SHELDON GARDNER
sheldon.gardner@staugustine.com
St. Augustine commissioners voted to fund a study into the utility rates in St. Augustine and surrounding areas.

The study will look at the possibility of lowering rates for some customers and possibly eliminating a surcharge over time, among other things.
The vote came during the commission’s regular meeting on Monday, when commissioners also delayed voting on further funding to the facilitator of the city’s visioning process.
City Public Works Director Martha Graham spoke briefly to the commission about the rate study, which would look at the surcharge that the city levies against customers who are outside of the city limits.
The study would also examine the base rates for utilities and water conservation.
Officials from St. Johns County and the City of St. Augustine met in November and decided to study the possibility of transferring sewer and water services to the county.
West Augustine representatives have been advocating for better sewer service for years.
The county recently supported a transfer of the utilities in exchange for adding millions of dollars worth of infrastructure to West King Street.
But city officials have said that the transfer would not extend any sewer to residential customers and would still cost millions of dollars.
West Augustine residents are also charged a surcharge since they are outside of the city limits. That surcharge adds about $15 to water and sewer bills combined on average.
A couple of commissioners voiced concern about rates being raised for other customers if the surcharge was eliminated.
“Somebody is going to pay more,” said Commissioner Donald Crichlow.
Graham said the objective of the study is not to lose revenue but to figure out how to transfer the cost somewhere else.
City Manager John Regan said the length of time that it took to eliminate the surcharge would affect rates.
Commissioners discussed the possibility of studying reducing the surcharge for certain areas.
The commission unanimously approved funding the study for $35,000, to be taken from utility reserves.,,,