Decision on water systems delayed (Citrus County)
Commissioners hear that customers and the county could save money if the county acquires FGUA systems. Still, they will seek more advice.
By CATHERINE E. SHOICHET
Published December 21, 2005
INVERNESS - County commissioners on Tuesday postponed their decision whether to acquire the Florida Governmental Utility Authority's Citrus systems.
But they did vote unanimously to appropriate $25,000 from the county's contingency fund so consultants can complete a more detailed analysis of the possible acquisition.
"I just don't feel comfortable making a decision here today with all of these unanswered questions," commission Chairman Gary Bartell said.
In the next few weeks, the consultants, FGUA officials and representatives from the county staff will hash out a more detailed report, including comparisons of specific costs under county and FGUA operation.
They will present their interim findings at the Jan. 10 County Commission meeting, when commissioners will decide whether to schedule an interim meeting to decide on the acquisition or wait until their Feb. 14 meeting to vote.
In Citrus, FGUA has water systems serving 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. It also has five wastewater systems.
The systems serve about 11,300 water customers and 5,215 wastewater customers.
The commission's decision Tuesday came after nearly three hours of presentations and discussion.
John Jenkins, a lawyer with the Tallahassee firm of Rose, Sundstrom & Bentley, told commissioners that customers could save money if the county acquires the FGUA's Citrus systems. He said commissioners were essentially weighing two issues: accountability and financial impact.
Accountability would increase if the county bought the systems, he said.
Financial consultant Mike Burton of Burton & Associates of St. Augustine told commissioners that the county could expect savings of at least $500,000 in administrative and general expenses, regulatory assessments and management of the expenses.
Under county ownership, water and wastewater rates would increase 48.2 percent in the next 10 years. Under FGUA ownership, the rates would rise 63.4 percent in that time period.
"There will be the need for (rate) increases under either scenario, but it will be less under the county," he said.
FGUA officials at Tuesday's commission meeting said numbers used in Burton's report were inaccurate.
David Miles, the utility's special projects administrator and former chief financial officer, said Burton's projections inexplicably increased operating costs and decreased revenues. And financial projections were made too far in advance, he said.
"Normally doing projections beyond five years out is really a crap shoot . . . there are so many things that will change over time that it's much more realistic to do only a five-year projection," Miles said.
But Burton said that even if he had used more liberal projections, the benefit to the county would be clear. "Under optimistic conditions or conservative conditions, the differential would still be very similar under both," Burton said.
Commissioners also asked FGUA officials present at the meeting why the utility had recently begun talking with county officials about helping to design improved water and wastewater systems in Chassahowitzka.
"We're just willing to help," FGUA director of operations Charles Sweat said. "We're just glad that we can help."
But Bartell said he was skeptical of the utility's renewed interest in Chassahowtizka. And he said he expressed that skepticism when he met with FGUA systems manager Robert Sheets last week.
"I said, you're six months late . . . Six months ago was when we needed that help," Bartell said.
In other commission news:
Late Tuesday, the commission voted against creating an assessment to fund sewer service in Chassahowitzka.
The vote was 2-2, with Bartell and Commissioner Dennis Damato voting for an assessment to fund creation of a wastewater system in the coastal community. But Vicki Phillip and Joyce Valentino voted against it.
The fifth commissioner, Jim Fowler, who has expressed support for creating sewer systems in environmentally sensitive areas of the county, was not at the meeting Tuesday.
The commission may revisit the issue early next year. For more details, see Thursday's Citrus Times.
By CATHERINE E. SHOICHET
Published December 21, 2005
INVERNESS - County commissioners on Tuesday postponed their decision whether to acquire the Florida Governmental Utility Authority's Citrus systems.
But they did vote unanimously to appropriate $25,000 from the county's contingency fund so consultants can complete a more detailed analysis of the possible acquisition.
"I just don't feel comfortable making a decision here today with all of these unanswered questions," commission Chairman Gary Bartell said.
In the next few weeks, the consultants, FGUA officials and representatives from the county staff will hash out a more detailed report, including comparisons of specific costs under county and FGUA operation.
They will present their interim findings at the Jan. 10 County Commission meeting, when commissioners will decide whether to schedule an interim meeting to decide on the acquisition or wait until their Feb. 14 meeting to vote.
In Citrus, FGUA has water systems serving 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. It also has five wastewater systems.
The systems serve about 11,300 water customers and 5,215 wastewater customers.
The commission's decision Tuesday came after nearly three hours of presentations and discussion.
John Jenkins, a lawyer with the Tallahassee firm of Rose, Sundstrom & Bentley, told commissioners that customers could save money if the county acquires the FGUA's Citrus systems. He said commissioners were essentially weighing two issues: accountability and financial impact.
Accountability would increase if the county bought the systems, he said.
Financial consultant Mike Burton of Burton & Associates of St. Augustine told commissioners that the county could expect savings of at least $500,000 in administrative and general expenses, regulatory assessments and management of the expenses.
Under county ownership, water and wastewater rates would increase 48.2 percent in the next 10 years. Under FGUA ownership, the rates would rise 63.4 percent in that time period.
"There will be the need for (rate) increases under either scenario, but it will be less under the county," he said.
FGUA officials at Tuesday's commission meeting said numbers used in Burton's report were inaccurate.
David Miles, the utility's special projects administrator and former chief financial officer, said Burton's projections inexplicably increased operating costs and decreased revenues. And financial projections were made too far in advance, he said.
"Normally doing projections beyond five years out is really a crap shoot . . . there are so many things that will change over time that it's much more realistic to do only a five-year projection," Miles said.
But Burton said that even if he had used more liberal projections, the benefit to the county would be clear. "Under optimistic conditions or conservative conditions, the differential would still be very similar under both," Burton said.
Commissioners also asked FGUA officials present at the meeting why the utility had recently begun talking with county officials about helping to design improved water and wastewater systems in Chassahowitzka.
"We're just willing to help," FGUA director of operations Charles Sweat said. "We're just glad that we can help."
But Bartell said he was skeptical of the utility's renewed interest in Chassahowtizka. And he said he expressed that skepticism when he met with FGUA systems manager Robert Sheets last week.
"I said, you're six months late . . . Six months ago was when we needed that help," Bartell said.
In other commission news:
Late Tuesday, the commission voted against creating an assessment to fund sewer service in Chassahowitzka.
The vote was 2-2, with Bartell and Commissioner Dennis Damato voting for an assessment to fund creation of a wastewater system in the coastal community. But Vicki Phillip and Joyce Valentino voted against it.
The fifth commissioner, Jim Fowler, who has expressed support for creating sewer systems in environmentally sensitive areas of the county, was not at the meeting Tuesday.
The commission may revisit the issue early next year. For more details, see Thursday's Citrus Times.
posted by Editor Facts & Myths @ 9:05 PM
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