WATER AND WASTEWATER RETAIL RATE ADJUSTMENT REPORT

Board of County Commissioners · 2026-07-21 · report

Miami-Dade County legislative item File Number 261269 is a report regarding a proposed 6% water and wastewater retail rate adjustment for the Miami-Dade Water and Sewer Department (WASD), effective October 1, 2026. The report was introduced on 7/9/2026, and the final action was 'Accepted' on 7/21/2026. The adjustment is projected to generate approximately $65.6 million in recurring annual revenue to support approximately $435 million in bond financing. The report details that without the increase, approximately $435 million in projects would be cancelled, including specific projects and Professional Services Agreements (PSAs) listed in Figure 1. The report states the adjustment would increase the monthly bill for low-usage households by approximately $0.82 and for the typical residential customer by approximately $3.77. The report recommends the adjustment to fulfill obligations under the Consent Decree, Ocean Outfall Legislation Program, Advanced Metering Infrastructure (AMI) Implementation, and other regulatory requirements. The report notes that the rate adjustment would require an amendment to Implementing Order 4-110, WASD's Schedule of Rates, Fees, and Charges. The report states that the proposed adjustment applies only to retail customers, and wholesale customer rates will be evaluated separately. The report also states that even with the proposed adjustment, the average combined water and sewer bill will remain below 1% of the median household income. The report lists numerous projects that would be cancelled if the rate adjustment is not approved, including but not limited to: Ocean Outfall Program ($12,788,783), Consent Decree Program and Construction Management ($183,464), Water and Sewer Design Services ($1,900,000), Wastewater Design Services ($4,400,000 each for Hazen and Sawyer, Black and Veatch, Brown and Caldwell), Capacity, Management, Operations and Maintenance ($2,200,000), Building Access Safety ($41,032,387), 48-in PCCP Forcemain Replacement - Opa Locka (Phase 2) ($4,500,000), Pump Station Upgrades (Regional) ($826,450), Industrial Reuse System (South) ($4,390,120), Treatment Filters Upgrade (Orr Plant) ($30,250,000), Effluent Pump Station Upgrade ($7,170,731), Hypochlorite Building Hardening ($27,893,326), Monitoring Well Installation ($2,970,784), Co-Generation Facility HVAC Improvements (South) ($13,578,864), Transmission Main Replacement ($3,076,322), FED Required - Inflow and Infiltration Inspection & Repairs ($15,605,946), JPA with City of Miami - Auburndale Neighborhood ($5,500,000), Compliance Upgrade: Lab and Control Room ($11,734,255), Control Room Facility Upgrade (Hialeah) ($5,050,950), Supply Wells Upgrade ($16,797,319), Sludge Line Replacement (Orr) ($2,125,304), Connect 2 Protect - Lateral Expansion ($8,975,000), 2050 Planning Horizon Integrated Master Plan - Wastewater ($3,091,050), Small Diameter Replacement NE 203 Terr ($25,836,782), Replacement of 36-in Forcemain NE 163rd St ($20,147,250), Pump Station 49, 425 Upgrade ($45,408,826), Regulatory Lab & Operator Control Room Replacement ($39,976,612), New Hypochlorite Facility (Preston) ($40,981,155), Watermain Upgrade: Green Tech Corridor S-4 ($27,552,609). The total for the listed projects is $434,744,289. The report also lists specific contractors for some projects, including Allied Contractors, Maestre Construction, Poole & Kent, Comtech Engineering, All Webbs Enterprises, David Mancini and Sons, Central Civil, Roadway Construction, RF Environmental, and NV5 Inc. The report states that without the increase, work under PSAs with Jacobs Engineering, AECOM, and Hazen and Sawyer would be terminated. The report notes that the next planned bond issuance is anticipated in Fiscal Year 2026-27 and is dependent upon the revenues generated by the proposed rate adjustment. The report also states that maintaining flat rates would hinder the Department's ability to meet minimum annual investment thresholds required under the County's 1993 Master Bond Ordinance and required debt service coverage ratios (1.10 for senior obligations and 1.00 for subordinate obligations).