Why do we need a rate study?
Indian River County Utility Services (IRCDUS) is conducting a rate study to evaluate the adequacy of the rates and fees it collects to cover the cost of providing water and wastewater services to its customers and to understand how its charges compare to other utility systems in the region.
IRCDUS is committed to providing safe and reliable water and wastewater services to its customers. IRCDUS operates as an enterprise fund which means it is self-supported by user rates. IRCDUS knows the current rate structure is unsustainable and insufficient to cover the cost of repairs, replacement, and rehabilitation of aging infrastructure. Proactive financial and rate management along with continuous evaluation of utility operating and infrastructure needs is essential to providing safe and reliable services for residents and businesses.
UNDERSTANDING OUR FISCAL POSITION
IRCDUS is conducting a rate study to evaluate the adequacy of the rates and fees it collects to cover the cost of providing water and wastewater services to its customers and to understand how its charges compare to other utility systems in the region.
ENSURING A SAFE AND RELIABLE FUTURE
IRCDUS operations and capital improvements, which includes new building facilities and upgrades, are funded exclusively through user fees (not through taxes). To ensure it can continue providing safe and reliable service for residents and businesses, IRCDUS is conducting the rate study to determine how the revenue from the combined utility system compares with its ongoing financial requirements.
RESULTS
The study concludes that existing rates are not sufficient to meet the water and sewer demands of the community IRCDUS serves. Existing rates aren’t enough to fund operating expenses and capital needs required to continue providing safe and reliable services.
- Annual cash flow deficits beginning in FY 24
- Rates don't fund operating expenses by FY 26
- Reserves are exhausted in FY 27
Existing rates are insufficient to fund annual operating expenses and capital needs.
FACT
Indian River County Department of Utility Services provides water service to 56,000 retail customers in unincorporated Indian River County, collects and delivers wastewater for treatment from 34,000 retail service connections and provides bulk sewer treatment service to the City of Fellsmere.
HOW WILL THIS AFFECT ME?
The initial rate increases will come into effect January 1, 2025 and a second increase will take effect October 1, 2025.
At IRCDUS, we are dedicated to providing our customers with high-quality, reliable services that meet their unique needs. We strive to be a trusted partner for businesses and individuals alike, offering innovative solutions and exceptional customer service at every turn.
FY 2024 RATES - WATER & SEWER (4,000 GALLONS)
IRCDUS residential water and sewer rates are the lowest of 14 peer utilities, with the highest being more than twice as much.
PUTTING THE COST AND VALUE OF WATER IN PERSPECTIVE
At IRCDUS, our mission is to provide reliable and accurate information services that help our clients make informed decisions.
Copyright © 2024 IRCDUS - All Rights Reserved.