Related videos:
In a historic vote, the Hialeah City Council approved the permanent elimination of the franchise fee applied to water and sewage bills, a surcharge that has burdened local households for years.
The measure was adopted on Tuesday following a public hearing and will take effect immediately, impacting the residents' next bimonthly bill.
The change means that the city will stop collecting $3.7 million annually, money that until now was going directly to the general fund.
Instead, that money will remain in the pockets of taxpayers.
According to official estimates, the relief will average $61 per household per year, although the amount will depend on each family's consumption.
According to Telemundo 51, the municipal administration explained that for a household with a bimonthly water and sewer bill of 250 dollars, the reduction will result in a savings of 10 dollars each cycle, which amounts to 60 dollars annually.
For those who consume less, for example around 150 dollars every two months, the benefit will be 6 dollars per cycle, amounting to 36 dollars a year.
For years, the franchise charge was an additional percentage that the city added to water and sewage bills, a revenue stream that could be activated or suspended based on budgetary needs.
Although it had been reduced to as low as 4% in recent years, it wasn't until now that it was completely eliminated.
The decision comes during a week of budget debates and amid intense discussions about property taxes, another sensitive issue for the residents of Hialeah.
While this relief comes immediately and tangibly in the water bill, the council will address the controversy regarding how much will be paid in property taxes in the new fiscal year next Thursday.
With the elimination of the franchise fee, Hialeah sends a direct relief signal to taxpayers, although the discussion about the weight of other taxes remains ongoing.
In August, it was reported that Hialeah would implement an increase in the cost of drinking water and sewage services of between 15% and 17% starting from the next fiscal year.
During a session of the City Council, the financial director, Ruth Ruby, explained that the increase was in response to a rate adjustment imposed by Miami-Dade County, necessary to cover the operational costs of the local water and sewage system.
The mayor Jacqueline García-Roves, who took office in April, had previously stated that "water is one of the biggest priorities. Let's see how we can assist residents in getting water supply," as quoted by Telemundo 51.
Frequently Asked Questions about the Removal of the Water and Sewer Fee in Hialeah
Why has the water and sewage fee been eliminated in Hialeah?
The water and sewage franchise fee has been eliminated to alleviate the financial burden on residents of Hialeah. The measure aims to cease collecting 3.7 million dollars annually, allowing this money to remain in the pockets of taxpayers. This translates to an average savings of 61 dollars per household per year, depending on each family's water consumption.
How will the elimination of this fee affect the residents of Hialeah?
With the removal of the fee, residents of Hialeah will experience a direct savings on their water and sewer bills. For example, a household with a bimonthly expense of $250 will see a reduction of $10 per cycle. This decision comes at a critical time, as residents are facing discussions about property taxes and future rate adjustments.
What impact will the elimination of the franchise fee have on Hialeah's budget?
The franchise fee represented 3.7 million dollars annually for Hialeah's general fund. With its elimination, these resources will no longer enter the municipal treasury, but it is anticipated that the measure will provide economic relief for residents, allowing them to have more money for other needs.
What are the reasons for the expected water rate adjustments in Hialeah?
The rate adjustments in the cost of water expected from the upcoming fiscal year in Hialeah are due to a rate adjustment imposed by Miami-Dade County to cover the operational costs of the local water and sewage system. An increase of between 15% and 17% in monthly bills is anticipated, occurring in a context of public discontent over what are considered excessive rates.
Filed under: