Wellness Ridge Community Development District

October 2025

Irrigation Rate Study Miscellaneous Charge Study

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Willdan Financial Services

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BACKGROUND & CONSIDERATIONS
Irrigation Rate Study

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System Background

The system to be operated in accordance with Consumptive Use Permit (CUP)
Proposed CUP Gallonage Allowances:

Land Use	Annual
Gallons	
Single Family Residential Dwellings (SFD)	50,837,740	
Townhomes (TH)	8,292,640	
Common Areas (CA)	30,968,136	
Total	90,098,516	

Basic Principles of Rate Setting

Rates must be fair, just, equitable, and non-discriminatory.
There should be a direct relationship between the cost of the service and the customer receiving benefit of that service.
Customers should pay for what they use.
Rates must recover the appropriate cost of service.

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Rates must provide the revenue required to provide for the health, safety, and welfare of the customers being served.

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Full cost recovery of utility expenditures
Cost-based rate structure
Equity among customer classes
Administrative efficiency
5-Year financial plan and continued financial health of Utility
Consistency with common industry standards

Rate Study Objectives

The primary goals and objectives of the Irrigation Rate Study include:

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RATE DESIGN PROCESS
Irrigation Rate Study

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General Rate Study Methodology

Customer Accounts	Usage Volumes

Customer Characteristics

Other Revenues	Rate Design &
Financial Plan
Total Revenue Requirements

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Operation & Maintenance Expense

Debt Service

Capital Expenditures

Rate-Setting Considerations

Common industry standards

Impact on existing customers

Water conservation goals

Current growth conditions

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Comparability with a neighboring utility

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What Was Done?

Fiscal Requirements/Operating Analysis
O&M	R&R, Reserve Funds, Transfers	Pay-as-you-go Capital

Capital Improvement Analysis

Other Fiscal Needs and Revenue Analysis

Proforma through FY 2030 with Annual Adjustments to Revenues and Expenses
Inflation	Customer Growth	Labor	Fuel/Electricity	Other

Developed Interactive Computer Model

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Block Allowances for Irrigation Rates

Irrigation block allowances based on lot size for residential customers
Promotes responsible irrigation water use
Ensures equity among customers
Aligns with the irrigation usage allowances included in the District’s CUP

Proposed Irrigation Rates

Description	FY 2026	FY 2027	FY 2028	FY 2029	FY 2030	
Base Charge (per customer/dwelling unit)	
SFD 60	$	9.74	$	10.08	$	10.43	$	10.80	$	11.18	
SFD 50	$	9.74	$	10.08	$	10.43	$	10.80	$	11.18	
SFD 41 FL	$	9.74	$	10.08	$	10.43	$	10.80	$	11.18	
SFD 40 RL	$	9.74	$	10.08	$	10.43	$	10.80	$	11.18	
SFD 32 RL	$	9.74	$	10.08	$	10.43	$	10.80	$	11.18	
TH 25 RL	$	2.44	$	2.52	$	2.61	$	2.70	$	2.80	
TH 22	$	2.44	$	2.52	$	2.61	$	2.70	$	2.80	
Common Areas	$	9.74	$	10.08	$	10.43	$	10.80	$	11.18	
Usage Charge Per 1,000 Gallons (Per Customer Dwelling Unit/Lot Size):	
Block 1	$	2.56	$	2.65	$	2.74	$	2.84	$	2.94	
Block 2	$	6.40	$	6.63	$	6.85	$	7.10	$	7.35	

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Note:	Rates shown above for FY 2027 through FY 2030 include an annual adjustment of 3.5% for inflation. District will adjust the prior year rate by the Florida Public Service Commission Annual Deflator Index, therefore, actual rates for the period may differ slightly from those presented above.

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Typical Monthly Bill Comparison – Irrigation

SFD 32 RL – 2,400 gallon cap per month	SFD 60 – 4,300 gallon cap per month

		Monthly Charges	Difference	
Type	Gallons	FY 2026
Clermont	FY 2026
Wellness Ridge CDD	$ Amount	Percent	
SFD 32 RL	
All	0	$	9.99	$	9.74	$	(0.25)	-2.50%	
All	1,000	$	12.60	$	12.30	$	(0.30)	-2.38%	
All	2,000	$	15.21	$	14.86	$	(0.35)	-2.30%	
All	2,400	$	16.25	$	15.88	$	(0.37)	-2.28%	
All	3,000	$	17.82	$	19.72	$	1.90	10.68%	
All	4,000	$	20.43	$	26.12	$	5.69	27.87%	
All	5,000	$	23.04	$	32.52	$	9.48	41.16%	

		Monthly Charges	Difference	
Type	Gallons	FY 2026
Clermont	FY 2026
Wellness Ridge CDD	$ Amount	Percent	
SFD 60	
All	0	$	9.99	$	9.74	$	(0.25)	-2.50%	
All	1,000	$	12.60	$	12.30	$	(0.30)	-2.38%	
All	2,000	$	15.21	$	14.86	$	(0.35)	-2.30%	
All	3,000	$	17.82	$	17.42	$	(0.40)	-2.24%	
All	4,000	$	20.43	$	19.98	$	(0.45)	-2.20%	
All	4,300	$	21.21	$	20.75	$	(0.47)	-2.19%	
All	5,000	$	23.04	$	25.23	$	2.19	9.50%	

Recommendations

Adopt the proposed annual rates during FY 2026. Thereafter, adjust the rates annually based on the Florida Public Service Commission Annual Deflator Index.

Begin funding a capital reserve fund for ongoing and anticipated capital improvements.

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Provide for a comprehensive review of the Irrigation Rates a minimum of every 5 years.

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PROCEDURE AND ANALYSIS
Miscellaneous Charge Study

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What Was Done?

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Identified Miscellaneous Charges

Developed Standard Unit Cost Rates:
Labor
Capital Equipment
Supplies

Calculated Charges:
Preliminary
Service
Administrative

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Preliminary Charges

Description

Proposed Charge

PRELIMINARY CHARGES
Application Fee
Developer/Builder	$		50.00	
Customer	$		25.00	
Meter Installation/Service Initiation Charge				
Residential Irrigation Service 3/4" Meter	$		650.00	
Residential Irrigation Service 1" Meter	$		850.00	
Commercial and all other sizes		At Cost		

Service Charges

Description

Proposed
Charge

SERVICE CHARGES
Connection/Disconnection of Service
After Hours Connection/Reconnection of Service Meter Re-read / Leak Inspection Fee

$	135.00
$	295.00
$	140.00

Meter Accuracy Test Fee	$	380.00 + Cost
Missing or Damaged Equipment Fees

Padlock Locking Device

$	20.00
$	20.00

Meter, any other than hydrant	At Cost

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Meter Box - Lid Replacement Meter Box - Full Replacement Hydrant Meter

$	30.00
$	155.00
$	500.00

Administrative Charges

Description

Proposed
Charge

ADMINISTRATIVE CHARGES		
Late Payment Charge (1)	$		15.00	
Returned Check Fee (2)				
Face Amount <= $50	$		25.00	
Face Amount > $50 and <= $300	$		30.00	
Face Amount > $300	$		40.00	
Face Amount > $800	5% of face value of check

Illegal Water Use (Fine plus actual usage)	
First Offense	$	980.00	
Repeat Offense	$	2,000.00	

Notes:
Greater of fixed fee or 1.5% of unpaid balance.

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As per FL Statutes 832.07 and 832.08.

Findings and Recommendations

The District does not currently have a comprehensive list of miscellaneous charges.

Adopt the miscellaneous charges proposed.

Adopt provisions for a comprehensive review of the miscellaneous charges a minimum of every 5 years.

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Include language for the Miscellaneous Charges in the District’s Policy Manual.

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Questions?

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Disclaimer

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For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the municipality with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the municipality, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the municipality, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, unless formally engaged to provide such information.