HomeMy WebLinkAbout1991 06 03 MEMO Utility Pass-through Rates•
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JC PELICAN
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330
FAX 407-589-5570
MEMORANDUM
DATE: June 3, 1991
TO: Mayor and City Council, City of Sebastian
THROUGH: Robert S. McClary, City Manager &ce�
FROM: Larry W. Napier, Acting Finance Director c;;,< '
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RE: General Development Utilities Pass -Through
Rate Increase
On April 29, 1991 the City of Sebastian received from General
Development Utilities, Inc. a notice of a pass-through rate
increase pursuant to Ordinance No. 0-81-8 and Ordinance No. 0-81-
9, sections 3(4)(a) and 3(4)(b), which states in part:" The
approved rates of any utility which is subject to an increase or
decrease in the rates that it is charged for electricity or the
amount of ad valorem taxes assessed against its property shall be
increased or decreased by the utility, without action by the
Council upon verified notice to the Council thirty (30) days
prior to its implementation of the increase or decrease that the
rates charged by the supplier of electricity or the taxes imposed
by the governmental body have changed."
Although the millage rate actually decreased from 6.644 to 6.5,
the assessed valuation on GDC -s tangible personal property, that
is plant, equipment and fixtures, actually increased from
$1,709,835.00 to $3,848,783.00, resulting in a majority of the
increase in the ad valorem taxes paid.
General Development Utilities, Inc. actually paid a total of
$100,755.29 on April 1, 1991 but they only passed through some
$96,725.08, which is the amount owed as of November 1, 1990 with
the 4% discount included. The City of Sebastian actually
received only $28,163.11 of the total taxes paid.
The IndiTn River County Property Appraiser's office was contacted
to find out the nature of the dramatic increase in the tangible
personal property valuation. The information received was that
this process had been on-going for a couple of years and the
appraiser's office had only recently completed the detailed
listing of all improvements belonging to the water and sewer
operation of GDU.