[twoplanekid]

At the NSCUDD meeting this Monday at 3PM at the Seebreeze Rec Center, listen to the discussion to raise water rates by 25% and increase the yearly automatic compounded rate increases. All NSCUDD customers located in the CSU area of operation, south of 466A and north of 44 will be affected by this rate increase. I will post my comments as a board member after the meeting to avoid any Florida Sunshine issues. Please attend to listen and make comments if you feel so inclined.

[Altavia]

Thanks for the heads up.

Is there any pre-read material available?

[Bill14564]

Originally Posted by Altavia

Thanks for the heads up.

Is there any pre-read material available?

Go to districtgov.org -> Your District -> NSCUDD -> Agendas and Minutes -> Jan 9 Meeting (towards bottom of page) -> Agenda Packet -> Page 83

[twoplanekid]

Below is part of what I stated at the meeting.

A few years ago, the Sumter County Commissioners voted to raise property taxes by 25%. I am sure that the county staff and other experts advised them that this increase was necessary and correct. We all know what happened next. At today’s NSCUDD board meeting, we are asked to raise our current CSU/SWCA water rates by 25% all at once or over a three year time period and to then increase our yearly compounded rates. Who can accurately forecast the future? I don’t know of a single person that can beyond one year at best. The Feds cant’ say for sure when inflation will be controlled or what degree of a recession we might face. And, raising our rate doesn’t help the fight against inflation and should be done very cautiously.

We purchased CSU less than four and then SWCA about two years ago based on forecasts created by experts and approved by staff. These forecasts certainly didn’t reflect any need to raise rates to our customers by 25% today. However, examine the R&R amounts in those valuation forecasts. We purchased both stating to our customers that we would be very careful about raising rates. As our costs to purchase the systems were large based of these forecasts, our bond payments consume most of our operating revenues. So, these two forecasts didn’t help in any way except to inflate our purchase cost.

We are now presented with a rate study that doesn’t have any underlying figures for us to review. No board member as far as I know was asked to attend any of the meetings between staff and consultants to generate these numbers. When we have a budget meeting to plan a budget for the following year, it’s a dedicated meeting that covers all figures in detail that takes us some time to review. I don’t see this happening today with this proposal to increase rates by 25%.

I represent our board on the investment advisory committee that meets several times a year to in detail review investment advice given by experts. Those experts are very cautious to say that their advice reflects on the current and a six month outlook. It’s hard to predict the future.

I would suggest that we consider raising our rates once by 10% to cover our operation out for one year. At the 2024 budget meeting, the board can then review the current economic situation and our operation figures in detail. If at that time a further rate increase is deemed necessary, we can address it then. I will not vote to increase our rates by 25% today as currently proposed.


I am pleased to say that the current board seems to agree to take a cautious approach to any rate increase. So, we will wait and see what the next staff proposal to the board will look like at the next board meeting.

Stay tuned.

Rick

[JP]

Sounds like a money grab by the new owners. Really???

[twoplanekid]

It's (CSU/SWCA) a public owned utility serving the Village residents/customers who reside south of 466A to 44 and governed by a seven member board who are elected to serve a four year term in office. Staff is shared with other Village CDDs. This same board, NSCUDD also govern NSU ( water systems from 466 to 466A) and Sumter Sanitation for solid waste service for CDDs 1 through 11. The 25% rate increase discussion is only for the CSU/SWCA part of the operation on NSCUDD (North Sumter County Utility Dependent District)

[twoplanekid]

Originally Posted by twoplanekid

It's (CSU/SWCA) a public owned utility serving the Village residents/customers who reside south of 466A to 44 and governed by a seven member board who are elected to serve a four year term in office. Staff is shared with other Village CDDs. This same board, NSCUDD also govern NSU ( water systems from 466 to 466A) and Sumter Sanitation for solid waste service for CDDs 1 through 11. The 25% rate increase discussion is only for the CSU/SWCA part of the operation on NSCUDD (North Sumter County Utility Dependent District)

Every resident is always invited to attend our public once a month meetings to hear what is said and ask questions.

[DAVES]

Originally Posted by twoplanekid

At the NSCUDD meeting this Monday at 3PM at the Seebreeze Rec Center, listen to the discussion to raise water rates by 25% and increase the yearly automatic compounded rate increases. All NSCUDD customers located in the CSU area of operation, south of 466A and north of 44 will be affected by this rate increase. I will post my comments as a board member after the meeting to avoid any Florida Sunshine issues. Please attend to listen and make comments if you feel so inclined.

I'm not familiar with this particular nonsense. We've all seen this over and over and over again. Say they NEED a 10% raise. If, they put in a 10% raise people would be upset. What they do is to ask for 25% and settle for 10% and the people say GREAT IT IS ONLY A 10% RAISE.

[Bill14564]

Originally Posted by DAVES

I'm not familiar with this particular nonsense. We've all seen this over and over and over again. Say they NEED a 10% raise. If, they put in a 10% raise people would be upset. What they do is to ask for 25% and settle for 10% and the people say GREAT IT IS ONLY A 10% RAISE.

Is that what you heard at the recent meeting? I was there and didn’t hear anything like that.

[Bogie Shooter]

Originally Posted by DAVES

I'm not familiar with this particular nonsense. We've all seen this over and over and over again. Say they NEED a 10% raise. If, they put in a 10% raise people would be upset. What they do is to ask for 25% and settle for 10% and the people say GREAT IT IS ONLY A 10% RAISE.

Originally Posted by Bill14564

Is that what you heard at the recent meeting? I was there and didn’t hear anything like that.

[twoplanekid]

At the January board meeting, staff presented two options for the rate increase.

Option 1: Higher Rate Adjustment Upfront
• Year 1 - 25% increase, Years 2-10 -3% annual increases
• Debt Service Coverage and Cash Targets Met By Fiscal Year 2027
• Better Ability to Handle Unforeseen Cost Increases
• User Rates Are Affordable and Competitive
• CSU Would Have Better Historical Financial Performance If Debt Financing Is
Needed
• Having Healthy Cash Reserves Is the Best Way to Improve a Utility's Credit
Rating (Lower Interest Rates and Issuance Costs When Debt Financing;
Lower User Rates Over Long Term)Page 83 of 245

Option 2: Phased Adjustments
• Years 1-3 - 10% increases annually, Years 4-10 -3% annual increases
• Financially Feasible
• Lower Rates in Fiscal Years 2023 and 2024
• Debt Service Coverage Target Met By Fiscal Year 2027, But Not Cash Target
(Do Not Have Time Value of Money Compared With Option 1)
• User Rates Are Affordable and Competitive

Staff recommended that the board Adopt Either Rate Adjustment Option 1 or
Option 2

At the board meeting, I said the following.

"I would suggest that we consider raising our rates once by 10% to cover our operation out for one year. At the 2024 budget meeting, the board can then review the current economic situation and our operation figures in detail. If at that time a further rate increase is deemed necessary, we can address it then. "

The following was sent to all board members the day after the meeting.

"You will find the updated CSU Rate Study Option 2 as directed by the Board. It is a 10-year spreadsheet, but it will be written in the rule change for 5 years, versus 10, based on board discussions. The board can change this as desired (would require advertising and a public hearing). "

It is my understanding that option 2 will result in even higher rates for our customers in years 2025 and beyond.

The next board meeting will take place Monday Feb. 13.

Stay tuned

[twoplanekid]

Originally Posted by twoplanekid

At the January board meeting, staff presented two options for the rate increase.

Option 1: Higher Rate Adjustment Upfront
• Year 1 - 25% increase, Years 2-10 -3% annual increases
• Debt Service Coverage and Cash Targets Met By Fiscal Year 2027
• Better Ability to Handle Unforeseen Cost Increases
• User Rates Are Affordable and Competitive
• CSU Would Have Better Historical Financial Performance If Debt Financing Is
Needed
• Having Healthy Cash Reserves Is the Best Way to Improve a Utility's Credit
Rating (Lower Interest Rates and Issuance Costs When Debt Financing;
Lower User Rates Over Long Term)Page 83 of 245

Option 2: Phased Adjustments
• Years 1-3 - 10% increases annually, Years 4-10 -3% annual increases
• Financially Feasible
• Lower Rates in Fiscal Years 2023 and 2024
• Debt Service Coverage Target Met By Fiscal Year 2027, But Not Cash Target
(Do Not Have Time Value of Money Compared With Option 1)
• User Rates Are Affordable and Competitive

Staff recommended that the board Adopt Either Rate Adjustment Option 1 or
Option 2

At the board meeting, I said the following.

"I would suggest that we consider raising our rates once by 10% to cover our operation out for one year. At the 2024 budget meeting, the board can then review the current economic situation and our operation figures in detail. If at that time a further rate increase is deemed necessary, we can address it then. "

The following was sent to all board members the day after the meeting.

"You will find the updated CSU Rate Study Option 2 as directed by the Board. It is a 10-year spreadsheet, but it will be written in the rule change for 5 years, versus 10, based on board discussions. The board can change this as desired (would require advertising and a public hearing). "

It is my understanding that option 2 will result in even higher rates for our customers in years 2025 and beyond.

The next board meeting will take place Monday Feb. 13.

Stay tuned

Everyone in CDD 9, 10 and 11 should attend the NSCUDD board meeting on Monday Feb 13th at 3PM at Seabreeze Rec Center when the board will decide to vote for or against staffs proposal of option 2 which is a larger increase than their first proposal.

details are found here starting on page 29

Public Portal • CivicClerk

then type on agenda packet

If you can't make it to this meeting, I will post my comments made at the meeting on this site later that day.

[rhood]

When you use an acronym like NSCUDD or any other, you should spell it out at least once in each narrative. I hate looking up acronyms. There are just too many.

[photo1902]

Originally Posted by rhood

When you use an acronym like NSCUDD or any other, you should spell it out at least once in each narrative. I hate looking up acronyms. There are just too many.

https://districtgov.org/images/Organ...pdf?v=20230123

[rhood]

Originally Posted by photo1902

https://districtgov.org/images/Organ...pdf?v=20230123

Told you I hate to look them up. Did you not understand? Acronyms shoe outlawed.