In a recent government meeting, officials discussed the pressing need for a water and sewer rate increase in Tamarac, marking the first adjustment in nearly a decade. Andrew Berman from Stantec Incorporated presented a comprehensive rate study, highlighting the city's infrastructure challenges and rising operational costs that necessitate this change.

Tamarac's water and sewer utility operates as an enterprise fund, relying solely on user fees rather than tax revenue. Berman noted that the city has not raised rates since 2014, despite a national average increase of 41% in utility rates over the past ten years. The city's current rates are among the lowest in Broward County, but maintaining this status is becoming increasingly unsustainable due to significant cost increases in chemicals, electricity, and wholesale sewer treatment.

The proposed plan includes a five-year rate adjustment strategy, with an initial increase of 15% for water services and 5% for sewer services. This is aimed at addressing a projected annual deficit that could deplete the city’s reserves by 2026 if no action is taken. Berman emphasized the importance of balancing the funding for capital improvements, particularly for the aging water treatment plant, which requires over $200 million in upgrades.

Commissioners expressed concerns about the impact of these increases on residents, particularly in light of rising living costs. Some suggested exploring alternative funding sources, such as federal grants, to alleviate the financial burden on residents. However, Berman and city officials reiterated that delaying necessary infrastructure investments could lead to more severe financial repercussions in the future.

The meeting concluded with a commitment to continue evaluating the financial plans annually, ensuring that the city can provide safe drinking water while managing costs effectively. The proposed rate adjustments will be brought back for further discussion and approval in upcoming budget meetings.