§ 32-65. Board shall fix just and reasonable rates.

(a)

Rates must be as filed with Board. No public utility shall charge or receive, directly or indirectly, any rates not on file with the Board for the particular class of service involved and no change shall be made in any such rates without the approval of the Board, after due notice and public hearing.

(b)

Public hearing on rates. The Board, after due notice, may hold a public hearing, on its own motion or upon complaint, for the purpose of considering, investigating, changing or fixing the rates and charges of any public utilities. If as a result of any such hearing and investigation, the Board finds that the rates, charges, classifications or practices of any such public utility are unjust, unreasonable, unjustly discriminatory, or unduly preferential, or that the rates and charges are insufficient to yield reasonable compensation for the service rendered, the Board shall determine and fix just and reasonable rates, charges, classifications and practices to be thereafter observed and conformed to by said public utility.

(c)

Investment basis of fixing rates. In fixing and determining just and reasonable rates and charges the Board shall investigate and determine the actual legitimate costs of the property of each public utility, actually used and useful or having present value for future use in the public service, which costs as determined by the Board shall be utilized for rate-making purposes, and shall be the money honestly and prudently invested by the public utility in such property used and useful in serving the public, less accrued depreciation, and shall not include any goodwill or going-concern value in excess of payments made therefor. Should it be determined by the Board, on its own or after judicial review and remand, that any utility for some presently unforeseen reason (the possibility of which is set forth in the decision of the Supreme Court of the State of Florida in Westwood Lake, Inc. v. Miami-Dade County, Fla. 1972, 264 So. 2d 7) is entitled to recover depreciation on contributed assets, then such amount shall be set forth as a surcharge on each periodic billing. The funds collected by the utility as such surcharge shall be deposited by the utility in a state or national banking institution or federal savings and loan institution at no less than the prevailing rate of interest. Such funds shall be held by the utility in trust for the customers thereof. No expenditures shall be made of such funds including the interest thereon except for the purpose of replacing contributed assets which have been determined by the Board to be in need of replacement or for constructing water system improvements which have been determined by the Board to be in need of replacement or for constructing water system improvements have been determined by the Board to be needed to meet Miami-Dade County fire-flow standards. The Board shall determine that the separate surcharge funds account shall be utilized in the best interests of the utility system in order to ensure sufficient funding for the replacement of contributed assets. In consideration of the privilege to collect and spend on fire-flow improvements the funds obtained by means of this surcharge, each utility shall include with its application filed with the Board an agreement that said utility shall transfer, deed and convey such improvements to Miami-Dade County or the Miami-Dade Water and Sewer Authority without receiving further consideration, within ten (10) days of the date if ever, upon which Miami-Dade County files its petition for condemnation or upon which Miami-Dade County or the Miami-Dade Water and Sewer Authority signs a letter of intent with said utility to purchase that utility. The utility shall permit the Board, with reasonable notice given, to review on an annual basis the separate surcharge funds account to ensure compliance with the terms of this section. When the Board determines that there are sufficient funds in the trust account reasonably to assure replacement of contributed assets as such replacement becomes necessary and for the upgrading of the water system to meet fire-flow standards, it shall immediately order the utility to cease making the surcharge.

(d)

Cash requirements basis of fixing municipal utilities' rates. Notwithstanding any other provision of this section, the Board, in fixing and determining just and reasonable rates for municipally owned and/or operated utilities pursuant to Section 32-66, may utilize a cash requirements approach which shall be the money honestly and prudently necessary to meet operation and maintenance expenditures, debt service reoperation and maintenance expenditures, debt service requirements on outstanding bond issues, and renewals and replacements.

(e)

Decision on rate changes. The Board shall make a decision on all rate matters within sixty (60) days after conclusion of the public hearings, and such decision shall be in the form of orders which shall embody the reasons for the determination made and findings of fact upon which the decision is predicated. Such orders shall provide the effective date upon which any change in rates shall become effective.

(f)

Cost of rate hearing. Where a rate hearing is held pursuant to application filed by a public utility, the direct costs to the County shall be paid by the applicant; such costs shall include the salary or fee of any independent consultant attributable to the rate hearing and the cost of providing a full and complete original record of the proceedings before the Board, taken down by a reporter appointed, selected or approved by the Board. Where a rate hearing is initiated by the Board, the Board shall pay these costs of such proceedings.

(Ord. No. 60-20, § 23, 7-5-60; Ord. No. 64-23, §§ 6, 7, 7-7-64; Ord. No. 72-32, § 1, 6-20-72; Ord. No. 72-54, § 1, 9-19-72; Ord. No. 75-28, § 15, 5-7-75; Ord. No. 75-56, § 1, 7-3-75; Ord. No. 78-71, § 1, 10-17-78; Ord. No. 78-88, § 2, 12-12-78; Ord. No. 83-101, § 1, 11-1-83)

Cross reference

Statements of approved water or sewer service, § 24-28.