[Bogie Shooter]

Originally Posted by twoplanekid

below is what I stated at the NSCUDD board meeting today ->

"The following are my thoughts on the CSU operation and rate increases. At the February 6th Village Financial Advisory meeting that I attended, it was stated that there is a potential declining health of US Household finances. We should be very cautious and take our time to raise rates for our customers who can’t shop around.

Some staff members didn’t seem to welcome me when I attended the residential district 10 and 11 board meetings to give supervisors notification that the NSCUDD board was discussing raising water rates by 25% or more and to invite them to visit our new waste management facility. Because of staff’s comments to me before the meetings, I made sure not to suggest that I was speaking for the board but only providing information and asking the supervisors to personally contact any NSCUDD board member or attend a board meeting if they have questions to ask. Most supervisors had no inkling that their residents might face rate increases and welcomed my comments. At some future board meeting, I would like to have a full discussion by this board covering what this board can talk about when we attend board meeting in the districts we represent and to let staff understand what this board is allow to say when attending those meetings.

I asked staff to present to you through district email the two valuations prepared by the firm that represented NSCUDD’s interests when the purchases of CSU and SWCA were made. As I could not tell you directly in that email because of the Florida Sunshine laws, I hope you looked at the projected figures for the 30 year period that helped to determine the purchase price for both. I believe that many of the figures were inaccurate especially the ones that forecasted replacement and contingency costs. Again, at a future board meeting I would like to cover what I believe took place and how we should change flaws in the procedures used to make those two purchases to prevent future mistakes.

Bruce sent an email to all board members stating that “both of which are still less costly than today’s rates charged by NSU and many other Central Florida Utilities”. When questioned by me, he did say that he did not mean to say NSU. However, let’s look at comparing the current rates for NSU to CSU. Both are operated by the NSCUDD board with help from the same District staff people and operated by Jacobs using the same consultants. Supplies purchased by both are the same with inflation factors being identical. CSU is the newer of the two systems. I would ask my fellow board members, which system has the higher current rates based on 3000 gallon used which staff believes is appropriate? Our customers in the CSU area of operation are charged almost 7% more than those living in the NSU area. If we increase CSU rates by option 2 and then yearly increases of 3%, I would calculate that the water rates in CSU compared to NSU will be 45% higher in 5 years. What in the world is happening?

I find it interesting that staff suggests that a higher than 25% increase is what they heard the board recommend at the last NSCUDD board meeting. In the minutes it states that “The Board provided consensus for Mr. Mantz to proceed with Option 2”. I did not hear any motion made by this board at the last board meeting to do that nor did I hear a consensus. And, we are asked to vote for a huge rate increase based in part by capital projects that we have not yet approved. I will say once again that I will only vote for a 10% increase in the first year to then discuss at a 2024 budget planning meeting what new rates might be needed at that time. So, I ask all board members to please, please, move very cautiously ahead. And, I formally propose a 10% rate increase for one year to then review any further possible rate adjustments at the 2024 budget planning meeting."

The board approved a one year 10% increase starting in April 2023 with our determining further rate increases at future board budget meetings.

Good job!