County to weigh buying FGUA systems (Citrus County)

Customers could save money, according to a consultant's report that will be presented to the County Commission on Tuesday.

By CATHERINE E. SHOICHETPublished December 19, 2005

Customers could save money if the county acquires the Florida Governmental Utility's systems in Citrus, according to a consultant's report.

Because of the size of the county's existing utility system, the report says, operational costs would be less under county ownership.

"As a result, customer rates would benefit from direct county ownership," the report said.
The report, compiled by Tallahassee law firm Rose, Sundstrom & Bentley, will be presented to the County Commission at 2 p.m. Tuesday at the Citrus County Courthouse, 110 N Apopka, Inverness.

The law firm's report also refers to a preliminary financial assessment from Burton & Associates, which says that under county ownership, water and wastewater rates would increase 13.7 percent in the next five years and 48.2 percent in the next 10 years. Under FGUA ownership, the report says, water and sewer rates would increase 24.8 percent in the next five years and 63.4 percent in the next 10 years.

The report also criticizes the accountability of the FGUA to customers in Citrus.
"As a practical matter, decisions affecting Citrus County customers are made by representatives of other counties," the report said.

Statewide, the FGUA serves more than 46,000 customers in five counties - Citrus, Polk, Lee, Collier and Osceola - with systems in Citrus, Golden Gate, Lehigh Acres and Poinciana. In Citrus, it has 11 systems, servicing Citrus Springs, Pine Ridge, Apache Shores, Lakeside, Gospel Island, Point O' Woods, Spring Gardens, Sugarmill Woods, Golden Terrace Estates, Oak Forest and Rosemont/Rolling Green.

Those systems service about 11,300 water customers and 5,215 wastewater customers.
Citrus utilities serve about 6,700 water customers and nearly 4,000 sewer customers. In five years, those numbers will double, according to projections.

In October, commissioners voted to set aside $50,000 to pay the team of consultants to begin evaluating whether the county should buy the FGUA's systems in Citrus.

The move came in response to concerns that the utility lacks accountability.

County officials have criticized the FGUA since July, when the utility first proposed new line extension and maintenance fees for property owners in Citrus Springs and Pine Ridge. The line extension fees for Pine Ridge customers have since been dropped. The county's Water and Wastewater Authority approved water main extension fees in Citrus Springs earlier this month, but the board followed county staff recommendations rather than adopting a higher increase originally proposed by the FGUA.

At Tuesday's meeting, commissioners will decide whether to move forward with the acquisition process.

They also will discuss whether to set an assessment to fund the water and wastewater projects in Chassahowitzka.

FGUA systems manager Robert Sheets said he met this week with County Commission Chairman Gary Bartell and county staffers to discuss possible solutions for the wastewater portion of the Chassahowitzka project. County engineers are working to redesign that portion of the project to reduce its cost.