Tampa Bay Water Board Approves 2020 Budget, Marking Nine Consecutive Years with No Wholesale Rate Increase - Tampa Bay Water News Releases

Tampa Bay Water Board Approves 2020 Budget, Marking Nine Consecutive Years with No Wholesale Rate Increase

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News Release

For Immediate Release

CLEARWATER, Fla. (June 18, 2019) – Tampa Bay Water’s board of directors approved the utility’s 2020 fiscal year budget with no rate increase, maintaining a wholesale drinking water rate of $2.56 per 1,000 gallons for the ninth consecutive year.

“Tampa Bay Water is committed to providing a reliable supply of clean, safe drinking water at an affordable price,” said Christina Sackett, Tampa Bay Water’s chief financial officer.

The budget was developed using a cost-efficient combination of water supplies while maintaining compliance with all regulatory permits. The projected water delivery to Tampa Bay Water’s member governments in 2020 is 180.8 million gallons per day (mgd), a 2.3 million-gallon-per-day increase in regional water demand from the previous year. The utility is planning to meet the region’s 2020 water needs with a blend of its diverse water sources, including:

  • 109.8 mgd of groundwater
  • 62.0 mgd of surface water
  • 9 mgd of desalinated seawater

Tampa Bay Water’s financial structure is maintained through the sale of water to its member governments. The agency’s capital and operating costs are set at a uniform rate that all six member governments share.

Tampa Bay Water’s $184 million, 2020 budget is made up of:

  • $157.4 million in fixed costs including:
    • $70.1 million to pay bond debt used to build a resilient water supply system for the region;
    • $47.4 million for operating costs to run the utility such as personnel, vehicles, equipment purchases and professional services;
    • 14.5 million for our public-private partnerships to operate and maintain our water supply facilities;
    • $10.2 million to pay debt used to purchase water supply facilities and create an interconnected water supply system;
    • $7 million to the agency’s pay-as-you-go fund to reduce the need to issue debt, which saves the agency and public millions in future interest expenses;
    • $6.6 million in renewal and replacement projects that proactively maintain the region’s water supply system for increased reliability; and
    • $1.6 million set aside to co-fund feasibility studies for the City of Tampa’s TAP project.
  • $26.6 million in variable costs that include power to operate water supply facilities and chemicals used in water treatment to deliver clean, safe water to the region. 

The utility continues to maintain its strong bond ratings, with AA+ from Standard & Poor’s and Fitch, and Aa1 rating from Moody’s. Tampa Bay Water’s excellent ratings are supported by:

  • The stability of the agency’s customers and the regional economy;
  • The flexibility and sustainability of its water supply system;
  • The essential service that the agency provides to the region; and
  • How well the agency’s management team controls finances.

About Tampa Bay Water

Tampa Bay Water is the largest wholesale water supplier in Florida, providing high-quality drinking water to its members, who in turn, supply water to more than 2.5 million residents of the Tampa Bay area. Tampa Bay Water member governments include the cities of New Port Richey, St. Petersburg and Tampa, and the counties of Hillsborough, Pasco and Pinellas. To learn more, visit tampabaywater.org.

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