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Leader suggests buying water facility

The Florida Governmental Utility Authority's hefty water-line fees for some residents irks commission Chairwoman Vicki Phillips.

By JUSTIN GEORGE
Published July 8, 2005

CITRUS SPRINGS - The Florida Governmental Utility Authority's plan to charge many Citrus Springs and Pine Ridge residents between $2,000 and $6,500 for water-line extensions - even though they're already hooked up - has angered at least one county commissioner.

County Commission Chairwoman Vicki Phillips said Thursday it might be time for Citrus County government to buy the authority out and run the subdivisions' water systems in an attempt to stabilize prices.

"Probably the only solution we have at this time is for Citrus County to buy this facility," Phillips said. "Tuesday, I think certainly, that will be brought up."

The County Commission will meet at 1 p.m. Tuesday at the Citrus County Courthouse, 110 N Apopka Ave. Phillips represents District 3, which includes Citrus Springs and Pine Ridge.

The authority, created in 2000, is an independent government entity that enabled some Florida counties, including Citrus, to team their resources and provide water and wastewater to their residents. It's run by its own board of directors.

In 2003, the authority acquired the Citrus Springs and Pine Ridge water systems. The authority pledged water rates would remain stable for five years. But on Wednesday, officials told a crowd of 200 subdivision residents that they needed to pay for future pipeline needs in the booming area and recoup some money for past projects, which were "underwritten," according to Charles Sweat, the authority's director of operations.

To make the $13-million or so needed, the authority is considering charging Citrus Springs property owners a $2,082 fee per lot and Pine Ridge owners $6,571. Pine Ridge lots are much larger than Citrus Springs lots. The fees could be paid all at once or with interest over a period of several years.

"Nobody is making a profit," authority spokeswoman Honey Rand said Thursday.

Utility officials thought the plan was the fairest way to raise money because water rates were not being hiked for everyone in the two subdivisions.

"This plan was meant to have growth pay for itself," Rand said.

The proposal affects more than 4,000 property owners of mostly vacant lots. But caught in the flux are seemingly hundreds of other residents who are hooked up to authority water already. The proposal also makes those who moved into their home after Dec. 1, 2003, pay.

That upsets Phillips.

"I think it's wrong, very wrong to charge people now when they're saying they're doing this based on new growth," she said. "And they're going to make new growth pay for itself? Those people who are here Dec. 1, 2003, are not newcomers."

She cited several problems with the proposal, including the county's own analysis of the project, which showed the authority putting in pipes to areas that might be annexed by a nearby subdivision - which has its own water - and to an area that might be obstructed by a future highway extension. She said the interest rate assigned to a payment system is too high. She said the county can't get clear answers, even though County Administrator Richard Wesch is a member of the authority's board.

Appointed to the board by county commissioners, Wesch serves on it at their discretion. Phillips said he did not inform commissioners of the authority's fee plan, and voted June 17 to bring it forward.

Now, Phillips said she may want to place a commissioner on the board in his stead. Wesch could not be reached Thursday.

Phillips also plans to investigate buying the Citrus Springs and Pine Ridge water systems. The authority could not immediately provide a cost for both systems, and Phillips did not immediately know if acquiring them would fit within the county budget. But her understanding was that the authority would sell the utilities back to participating counties at cost.

Rand said the water systems can be bought for the original purchase prices plus whatever money was spent to improve them.

"The mission of FGUA is to acquire private facilities and hold them until governments are ready to take them over," Rand said.

Justin George can be reached at 352 860-7309 or jgeorge@sptimes.com

[Last modified July 8, 2005, 01:02:17]