STORAGE NAME: h0011d.COM
DATE: 3/14/2025
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FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 11
TITLE: Municipal Water and Sewer Utility Rates
SPONSOR(S): Robinson, F.
COMPANION BILL: SB 202 (Jones)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Economic Infrastructure
18 Y, 0 N
Intergovernmental Affairs
16 Y, 0 N
Commerce
SUMMARY
Effect of the Bill:
The bill states that a municipality which operates a water or sewer utility outside its municipal boundaries must
charge consumers outside its boundaries the same rates, fees, and charges as it charges consumers within its
boundaries if:
The consumers are located in a separate municipality, and
The municipality providing service uses a water or sewer treatment plant located in the separate
municipality to serve those consumers.
Fiscal or Economic Impact:
The bill may have an indeterminate negative impact on certain local government revenues.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill provides that a municipally owned utility which provides water or sewer services outside of its municipal
boundaries must charge consumers outside its boundaries the same rates, fees, and charges as it charges
consumers within its boundaries if:
The consumers are located in a separate municipality, and
The municipality providing service uses a water or sewer treatment plant located in the separate
municipality to serve those consumers. (Section 1).
The bill provides an effective date of July 1, 2025. (Section 2).
FISCAL OR ECONOMIC IMPACT:
LOCAL GOVERNMENT:
The bill may have a negative fiscal impact on municipalities which own and operate water or sewer utilities and
serve consumers located in another municipality with facilities located in the recipient municipality, as it reduces
the amount that those municipal water and sewer utilities that use such facilities can charge such consumers.
PRIVATE SECTOR:
The bill may result in cost savings for certain municipal water and sewer utility consumers located outside of
municipal boundaries.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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RELEVANT INFORMATION
SUBJECT OVERVIEW:
Municipally Owned Utilities
Pursuant to Art. VIII, s. 2(b), of the Florida Constitution, municipalities have the governmental, corporate, and
proprietary powers to enable them to conduct municipal government, perform municipal functions, and render
municipal services. Municipalities may exercise any power for municipal purposes, except when expressly
prohibited by law.
1 The legislative body of each municipality has the power to enact legislation on any subject upon
which the state Legislature may act with certain exceptions.
2 Under their home rule power and as otherwise
provided or limited by law or agreement, municipalities may provide utilities to citizens and entities within the
municipality’s corporate boundaries, in unincorporated areas, and even in other municipalities.
Municipalities are authorized by general law to provide water and sewer utility services.
3 With respect to public
works projects, including water and sewer utility services,
4 municipalities may extend and execute their corporate
powers outside of their corporate limits as “desirable or necessary for the promotion of the public health, safety
and welfare.”
5 A municipality may not extend or apply these corporate powers within the corporate limits of
another municipality.
6 However, it may permit any other municipality and the owners of lands outside its
corporate limits or within the limits of another municipality to connect with its water and sewer utility facilities
and use its services upon agreed terms and conditions.
7 An informal study conducted in 2014 indicated that
approximately 250 municipalities provided water service and approximately 220 municipalities provided
wastewater service. Of these municipalities, the study found that approximately 140 provided water and/or
wastewater services to consumers outside of their municipal boundaries, which may have included consumers in
unincorporated areas of counties or in other municipalities.
8 These utility systems are exempt from the jurisdiction
of the Florida Public Service Commission.
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Municipal Utility Rates, Fees, and Charges Outside of Municipal Boundaries
A municipality that operates a water or sewer utility outside of its municipal boundaries may impose higher rates,
fees, and charges on consumers receiving service outside of its corporate boundaries as compared to the rates,
fees, and charges imposed on consumers within its boundaries. The municipality can accomplish this in two ways:
First, for consumers outside of its boundaries, it may add a surcharge of up to 25 percent of the rates, fees,
and charges imposed on consumers within its boundaries. This mechanism does not require a public
hearing.
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Second, it may set separate rates, fees, and charges for consumers outside its boundaries based on the same
factors used to set rates for consumers within its boundaries. It may add a surcharge of up to 25 percent of
1
Section 166.021(2), F.S., provides that any activity or power which may be exercised by the state or its political subdivisions
is considered a municipal purpose.
2
Pursuant to s. 166.021(3), F.S., a municipality may not enact legislation on the following: the subjects of annexation, merger,
and exercise of extraterritorial power, which require general law or special law; any subject expressly prohibited by the
constitution; any subject expressly preempted to state or county government by the constitution or by general law; and any
subject preempted to a county pursuant to a county charter adopted under the authority of the State constitution.
3
Pursuant to s. 180.06, F.S., a municipality may “provide water and alternative water supplies;” “provide for the collection and
disposal of sewage, including wastewater reuse, and other liquid wastes;” and “construct reservoirs, sewerage systems, trunk
sewers, intercepting sewers, pumping stations, wells, siphons, intakes, pipelines, distribution systems, purification works,
collection systems, treatment and disposal works” to accomplish these purposes.
4
Other public works projects authorized under s. 180.06, F.S., include alternative water supplies, maintenance of water flow
and bodies of water for sanitary purposes, garbage collection and disposal, airports, hospitals, jails, golf courses, gas plants and
distribution systems, and related facilities.
5
S. 180.02(2), F.S.
6
Id.
7
S. 180.19, F.S.
8
Analysis of House Bill 813 (2014), Florida House of Representatives.
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S. 367.022(2), F.S.
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S. 180.191(1)(a), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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these charges, provided that the total of all such rates, fees, and charges for service to consumers outside its
boundaries may not exceed the total charges to consumers within its boundaries by more than 50 percent
for corresponding service. Rates set in this manner require a public hearing at which all users served or to
be served by the water or sewer utilities and all other interested persons will have an opportunity to be
heard concerning the proposed rates.
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There is no central repository for information concerning municipal water or sewer service rates that identifies
municipalities that impose higher rates on consumers outside of the municipal boundaries, the specific mechanism
used by such municipalities to establish such rates, or the level of any additional charge or surcharge imposed.
Additional Relevant Information
Art. VII, s. 18(b), of the Florida Constitution states that the legislature may not enact any law that would reduce the
authority municipalities or counties have to raise revenues in the aggregate, except upon approval of two-thirds of
the membership of each house of the legislature.
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Economic Infrastructure
Subcommittee
18 Y, 0 N 3/5/2025 Keating Bauldree
Intergovernmental Affairs
Subcommittee
16 Y, 0 N 3/12/2025 Darden Burgess
Commerce Committee Hamon Bauldree
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S. 180.191(1)(b), F.S.