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Originally Posted by twoplanekid
NSCUDD had to sell over $200 million worth of bonds to purchase these two system from the Developer. And now, NSCUDD has to pay for what we purchased which does affect our cost to then influence our water rates. I will post my comments made at the Monday meeting for all to read on this site.
However, if you can please attend the meeting this Monday at 3PM in the Seabreeze Rec Center. All residents living in CDD9, 10 and 11 will have their rates raised by a yet to be approved amount. If the current staff proposed rate structure is approved( Years 1-3 - 10% increases annually, Years 4-5 -3% annual increases), your rates will be going up by way over 25%.
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I am considering attending this meeting. I have begun to read the report. It looks like the $200,000,000 price we paid for this utility by floating bonds is not adequately covered by revenues. I also noticed that there were a large number of spreadsheets that purport to show that our increased rates for 2023 (10%+) are in line with the average for all water utilities in Central Florida, but if we consider that future yearly additional increases of 10% per year are planned for the two years after 2023 then our rates will be higher than that average by 2025. Another interesting thought that occurred to me is that if people cut their water use by 25-50% what will this do to these income projections? More than likely people won’t cut back this much, but if they do, the utility will have to increase rates much higher than projected as revenue will fall far short. Villagers overuse their irrigation systems and proper usage could cut water consumption by at least 25%. I hope they were smart enough to include this possibility in their calculations.