Council adopts 1.3 multiplier for sewer-only customers to shore up utility fund

The Crestview City Council on second reading adopted Ordinance 2034, applying a 1.3 rate multiplier to customers who receive only sewer service from the city. Staff said the municipality operates its utility fund as an enterprise and needs a rate structure that recovers full costs; sewer-only service is costlier per customer to provide when water service is not included.

"The survey completed by the consultant indicated a multiplier of 1.3 to sewer-only customers as a conservative amount," staff said, adding the change is consistent with broader development practices in Florida. Staff projected the multiplier would generate about $170,000 in additional utility fund revenue in 2027, increasing incrementally to roughly $320,000 in 2035 to support infrastructure maintenance and capital improvements. The council approved the ordinance 4-0 with one absence.

Staff noted this adjustment is intended to equitably distribute costs across the system and reduce the need to shift costs to taxpayers. The ordinance moves forward on second reading adoption and will be incorporated into the utility billing framework described in the city's comprehensive fee schedule.