Regulatory official says proposed fee is excessive (Citrus County)
By Terry Witt
The county’s utility regulator on Monday said he is recommending denial of a government utility’s request to impose a $2,068 special property assessment to pay for water line extensions in Citrus Springs.
But Utility Regulatory Director Robert Knight said the Florida Governmental Utility Authority is entitled to earn more than the $446 per lot it currently collects for line extensions.
The unanswered questions: How much should the utility charge, and what is fair?
Knight will discuss his recommendations Wednesday afternoon when the Citrus County Water and Wastewater Authority convenes for a three-day public hearing to consider FGUA’s proposals. Knight advises the WWA on rate and utility regulatory issues.
FGUA also wants to impose a line maintenance fee of about $15 in Citrus Springs and $30 in Pine Ridge, according to Knight, but he will recommend a flat denial of those fees. He said FGUA is already recovering its maintenance costs through its water and sewer rates.
The hearing begins at 3 p.m. Wednesday in Room 166 of the Lecanto Government Building. It reconvenes at 8:30 a.m. Thursday, and if need be, the hearing can be extended to 8:30 a.m. the following Monday. The room is reserved for all three days.
FGUA has been criticized by some residential customers for attempting to impose the property assessments without county review. County commissioners agreed and argued the county’s interlocal agreement with FGUA gave the county regulatory authority over the assessments. FGUA relented and allowed the review.
Knight said he agrees FGUA has the right to recover its costs in building new water lines, but $2,068 is excessive. In the agenda package, Knight lists his recommendations and his gives reasons.
He initially suggested that a property assessment of $1,554 would be enough to cover line extensions, but that figure was based on the company issuing bonds to pay for the extensions. Knight said a bond issue would cost money. He thinks FGUA can recover its costs by charging customers more for line extensions as they build them rather than incurring the costs of a big bond issue.
Knight said FGUA’s numbers are based on its plan to build 34.5 miles of water line in Citrus Springs in the first of six phases, but he said the plan is to extend water lines to areas not currently under development, and he disagrees with that philosophy. He said it is not justified.
However, he added that FGUA should be able to recover its costs when it builds a water line that passes 20 vacant lots to reach a new home at the end of the street. Every vacant lot owner should pay an equal share of the cost. But Knight said FGUA is currently absorbing the cost of building lines past the vacant land. He said that isn’t fair to the utility.“They’re only recovering 4 percent of their costs,” he said.
The county’s utility regulator on Monday said he is recommending denial of a government utility’s request to impose a $2,068 special property assessment to pay for water line extensions in Citrus Springs.
But Utility Regulatory Director Robert Knight said the Florida Governmental Utility Authority is entitled to earn more than the $446 per lot it currently collects for line extensions.
The unanswered questions: How much should the utility charge, and what is fair?
Knight will discuss his recommendations Wednesday afternoon when the Citrus County Water and Wastewater Authority convenes for a three-day public hearing to consider FGUA’s proposals. Knight advises the WWA on rate and utility regulatory issues.
FGUA also wants to impose a line maintenance fee of about $15 in Citrus Springs and $30 in Pine Ridge, according to Knight, but he will recommend a flat denial of those fees. He said FGUA is already recovering its maintenance costs through its water and sewer rates.
The hearing begins at 3 p.m. Wednesday in Room 166 of the Lecanto Government Building. It reconvenes at 8:30 a.m. Thursday, and if need be, the hearing can be extended to 8:30 a.m. the following Monday. The room is reserved for all three days.
FGUA has been criticized by some residential customers for attempting to impose the property assessments without county review. County commissioners agreed and argued the county’s interlocal agreement with FGUA gave the county regulatory authority over the assessments. FGUA relented and allowed the review.
Knight said he agrees FGUA has the right to recover its costs in building new water lines, but $2,068 is excessive. In the agenda package, Knight lists his recommendations and his gives reasons.
He initially suggested that a property assessment of $1,554 would be enough to cover line extensions, but that figure was based on the company issuing bonds to pay for the extensions. Knight said a bond issue would cost money. He thinks FGUA can recover its costs by charging customers more for line extensions as they build them rather than incurring the costs of a big bond issue.
Knight said FGUA’s numbers are based on its plan to build 34.5 miles of water line in Citrus Springs in the first of six phases, but he said the plan is to extend water lines to areas not currently under development, and he disagrees with that philosophy. He said it is not justified.
However, he added that FGUA should be able to recover its costs when it builds a water line that passes 20 vacant lots to reach a new home at the end of the street. Every vacant lot owner should pay an equal share of the cost. But Knight said FGUA is currently absorbing the cost of building lines past the vacant land. He said that isn’t fair to the utility.“They’re only recovering 4 percent of their costs,” he said.
posted by Editor Facts & Myths @ 8:48 AM
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