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FY 2023 Non-Ad Valorem Assessment Rate Increase for Hernando Beach South Street Lighting Municipal Service Benefit Unit and Establishment of Future Maximum Rate
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BRIEF OVERVIEW
Due to the impact of rising gas prices, Withlacoochee River Electric Cooperative (WREC) has raised their fuel surcharges in June 2022 and anticipates a second increase before the end of the calendar year. In addition, WREC has been changing lighting from a Sodium Vapor fixture at a monthly cost of $7.74 per light to a LED style Cobra fixture at a monthly cost of $10.15 per light for both replacement and additions within the district. The change in fixtures have further impacted the overall operational cost to the district.
The Hernando Beach South Street Lighting MSBU currently has 120 Cobra-105 (Sodium Vapor) lights and 29 Cobra-205 (LED) lights. The older Cobra-105 lights are being replaced with the Cobra-205 lights at a rate of five per year, creating an increase of $2.41 monthly per light, which in turn creates a yearly increase of $28.92 per light.
As a result, the Hernando Beach South Street Lighting Municipal Service Benefit Unit (MSBU) district's assessment revenue can no longer support the increasing annual operating expenses and maintain the required 18% reserves at the current assessment rate of $32.00. Therefore, staff recommends increasing the FY 2023 non-ad valorem assessment rate to $42.00 per unit to operate 149 street lights; and increasing the maximum assessment rate from $37.00 to $50.00. The MSBU contains 424 units and the estimated annual assessment revenue to be collected is $16,900 based on 95% collection rate.
MSBU Name Fund ORD Current FY22 Proposed FY23 Proposed Max Rate
Hernando Beach South 7111 90-07 $32.00 $42.00 $50.00
In accordance with Section 197.3632, Florida Statutes, a non-ad valorem assessment roll shall be adopted at a public hearing held before September 15th if the non-ad valorem assessment is increased beyond the maximum rate ...
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