tophcfa |
10-20-2019 10:00 AM |
Quote:
Originally Posted by LuvtheVillages
(Post 1689784)
In addition to the cover memo, you also need to read the Public Interest Determination attachment (as suggested by TwoPlaneKid.)
It only lists positives. I did not see any negatives. It looks like there are some tax savings to be had. It was written by District Manager Baier.
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Thank you for pointing me toward that memo. It does answer some, but not all of my questions. Since the operations and administration of the utility are currently being sub-contracted out, and would continue to be contracted out to the same service provides after the sale, presumably the service quality and operating costs would not change. The memo states three categories of cost benefits resulting from the new owner being a private, versus public entity. I buy into two of the three arguments. First, a private entity does not have a profit motivation, which should help keep customer rates down. Second, a private entity can sell tax-exempt bonds which carry a lower interest rate. Third is that a private entity is exempt from paying many forms of taxes. Not having to pay taxes at the state and federal level certainly is a plus, but not having to pay local property and other local taxes is not a benefit. This exemption is simply a shell game. The county needs its revenue, if the utility becomes tax exempt, the county will simply have to raise taxes from other sources (such as Villages homeowners) to make up the revenue shortfall.
I can say that without a doubt, that after reading the memo, it is much clearer that there are potential benefits to the sub-set of Villagers that use the services of the Utility being considered for sale. On the other hand, I see this as a negative for all other residents of Sumter County who are not customers of the utility, including many Villagers. At least the level of transparency involving this potential transaction blows away what took place during the 25% tax increase fiasco.
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