JACKSONVILLE, Fla. – Amid ongoing scrutiny of Jacksonville’s public utility, the JEA Board of Directors will take part in a detailed budget workshop on Tuesday, where they will hear recommendations for rate increases.
The discussion comes as a Jacksonville City Council special investigative committee continues to look into allegations about workplace culture at JEA and questions about whether the utility failed to properly collect certain water and sewer capacity fees.
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That committee even raised the possibility on Monday of expanding its investigation to include JEA’s lobbying contract and a major power plant project.
On top of being under the City Council’s microscope, JEA has a projected budget shortfall exceeding $107 million because of the rising costs across its electric, water and sewer systems.
The electric system accounts for the largest gap, at roughly $61.5 million, according to analysts. JEA is expected to be short about $19.6 million in water services and $26 million in sewer operations.
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To help close the deficit, JEA plans a rate increase in October, but how much rates will increase is still under discussion.
The Board will get a detailed breakdown of the revenue requirements, target rate revenues and rate recommendations for both the Water and Sewer System and the Electric System during Tuesday’s workshop.
They will also hear about a possible rate restructuring proposal for the electric system.
The exact impact of any rate increase on customers will depend on usage levels.
Along with rate increases, the Board will get an update on the issue of unpaid capacity fees.
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The fees, typically charged when properties first connect to water and sewer services, are based on projected usage. But certain large developments around Jacksonville have not faced an increased capacity fee despite exceeding their original target usage because of new development.
City Councilmember Ron Salem, who is the council’s liaison for JEA, has said that recovering millions of dollars in unpaid fees could help offset future rate hikes and suggested the possibility of establishing payment plans.