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Gulfport adopts new rate structure to limit water use

The more water a household or business uses, the higher the rate will be. The goal: reduce consumption by 5 percent.

By NEGAR TEKEEI

© St. Petersburg Times,
published October 7, 2001


GULFPORT -- A quick knock on the bathroom door and Philip Reed's children know the drill.

Their three minutes in the shower are up. The meter is running, and the cost is rising. Since Gulfport started using a new rate structure last month, his family's water bills are higher, so showers must be shorter.

The seven children who live with him understand, he says. They know that Gulfport's water and sewage rates have risen, and they know they have to make a few sacrifices. His family's water costs may be up $8 a month.

Last month, Gulfport started billing water usage in a new way: Homeowners and businesses that use more than 3,000 gallons of water a month will pay more, gradually, for every gallon they use. It's called an "inverted" rate structure; the more you use, the more a gallon costs.

Gulfport officials say they had little choice but to adopt a new system. The City Council is trying to comply with an order from the Southwest Florida Water Management District, or Swiftmud, to reduce water consumption by 5 percent, and to prepare for an increase in what the city pays St. Petersburg for water and sewage treatment.

Inverted rate structures are becoming increasingly common among municipalities struggling to curb water usage.

The average Gulfport house or business uses approximately 6,500 gallons a month, a figure that includes high-end users such as schools, car washes, Stetson University and the South Pasadena Yacht and Country Club.

The Reed home, which used approximately 8,600 gallons of water in September, is only one of 3,656 households and businesses facing an increase in their water and sewage bills because they use more than 3,000 gallons a month.

At the same time, about 4,000 of Gulfport's water and sewage customers who use less than 3,000 gallons a month will see no increase in their bills.

Previously, each of the city's water and sewage customers paid $3.75 per 1,000 gallons. Now, for every additional gallon from 3,001 to 5,000 the city will charge $4.25 per 1,000 gallons; from 5,001 to 10,000 the city will charge $4.75 per 1,000 gallons; from 10,001 to 15,000 the city will charge $5.50 per 1,000 gallons; and for anything higher than 15,000 gallons the city will charge $5.75 per 1,000 gallons.

City manager Robert Lee said the inverted system was not necessarily a choice -- it was either follow Swiftmud's executive order or pay hefty fines. In March, Swiftmud outlined the process with which South Pasadena had to comply in order to decrease its consumption level by 5 percent. Although the order does not mandate the inverted rate structure, it implies a strong recommendation.

On April 1, St. Petersburg increased what it charged Gulfport for water and sewer by 5.5 percent. Lee said Gulfport then compared its position with other similarly situated municipalities such as Oldsmar, which also receives its water and sewage treatment from St. Petersburg and uses an inverted rate structure, and voted Sept. 18 to implement the new system.

On Wednesday, Bob Lee received another notice from St. Petersburg. The city planned to up the rates by another 10.5 percent, and the next day, St. Petersburg officials voted to do precisely that. The new rates, an increase to $2,102 per million gallons from the current $1,902, are effective Nov. 1. (Residential water users in St. Petersburg may see similar 10.5 percent increases in their bills.)

St. Petersburg determines how much it will charge for providing water by how much it costs the city to treat the water it receives from Tampa Bay Water, the regional water supplier. As Tampa Bay Water looks at different methods of getting water, the cost is passed down to St. Petersburg, which passes it further down to Gulfport.

Today, Tampa Bay Water draws its water from well fields and pumps it to St. Petersburg's treatment plant, located in northwest Hillsborough county.

David Henderson, manager of St. Petersburg's treatment plant, said the water undergoes several processes to transform it into drinking water and is then pumped to cities including Gulfport, Oldsmar, South Pasadena and other small, wholesale customers.

Paul Williams, Gulfport's public services director, said the city is aware of the need for conservation and is available to help customers make minor alterations to the way they use water in order to save.

"There are a lot of little things that people can do to help conserve water and keep their bills down," Williams said.

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