FL S0940

Removes the 25% surcharge cap that municipalities could previously impose on water and sewer utility customers located outside municipal boundaries

Eliminates the 50% maximum limit on total rates, fees, and charges for outside-boundary customers compared to in-boundary customers

Allows municipalities to continue existing surcharges on outside-boundary customers only to comply with bond covenants in effect as of July 1, 2024, with mandatory phase-out upon debt retirement, expiration, or refinancing

Requires municipalities operating water or sewer utilities outside their boundaries to submit a rate study to the Department of Environmental Protection by January 1, 2028, and every 7 years thereafter, evaluating capital investment needs, revenue sufficiency, and equitable cost distribution among customer classes

Municipalities serving fewer than 10,000 water or sewer customers may petition for up to a 2-year extension to complete the rate study upon demonstrating undue financial or administrative burden