KPMG AUDIT – $376,000,000 INCREASE IN SPENDING!
THE FOLLOWING INFORMATION IS TAKEN DIRECTLY FROM THE 2015 KPMG AUDIT OF CCU.
YOUR WATER AND SEWER RATES WILL CONTINUE TO INCREASE YEAR AFTER YEAR FOR THE FORESEEABLE FUTURE TO FUND $376,000,000 IN SPENDING.
CHARLOTTE COUNTY RESIDENTS ALREADY HAVE THE THIRD OR FOURTH HIGHEST WATER AND SEWER RATES IN FLORIDA.
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CCU’s funding strategy beyond 2015 includes future CUSTOMER RATE INCREASES to allow the funding of the CIP projects. Recognizing the needs and importance related to CCU’s capital program, the Board of County Commissioners, approved a 0.75% water and 6% sewer rate increase effective October 1, 2014. (This is misleading. Those increases are every year for three years) The rate increases are scheduled OVER THREE YEARS and are projected by CCU to be sufficient to fund the current CIP.
4.1.A Observation: The capital program is significant with $90 million funded in FY2015 and $150 million in total for five years ending FY2019. CCU has identified ADDITIONAL FUTURE CAPITAL PROJECT NEEDS OF $226 MILLION. The high volume of projects places substantial workloads and pressure on existing staff capabilities and increases the financial impacts borne by CCU customers.
4.1.C Observation: Customer rates are above average compared to neighboring utilities, with increases for next 3 years approved by Board (6%/year for sewer rates). The recent Rate Study projected RATE INCREASES OVER 5 YEAR PERIOD to cover the $150 million capital program and debt service coverage requirements. The 3 year rate schedule approved by Board MAY NOT BE ADEQUATE FOR FUNDING the current proposed CIP of $150 million under the existing financing approach.
http://www.charlottefl.com/…/KPMG-Final-Report-CCU-Audit.pdf
