Officials contend inflated price paid to Developer forcing water rate increases for Villagers

Officials are contending that inflated prices paid to the Developer for utility infrastructure are forcing steep water rate increases for Villagers.

A contentious meeting this week of the North Sumter County Utility Dependent District Board of Directors ended with an agreement to increase water rates by 10 percent and hold a workshop to consider future rate increases.

Last month, the board balked at the idea of raising rates by 25 percent.

The Central Sumter Utility and the Sumter Water Conservation Authority currently serve approximately 14,000 homes in Community Development Districts 9 through 11 and Brownwood. NSCUDD bought SWCA from the Developer in 2021 from the Developer for $111 million. In 2019, the NSCUDD board agreed to pay $98.5 million for the Developer-owned Central Sumter Utility.

Although they were given assurances at the time of the purchase that the infrastructure was in good shape, NSCUDD board directors recently were informed the systems will require $26.1 million in capital improvements through 2032.

Longtime NSCUDD critic Dan Warren, elected to the board last year, said the directors have been backed into a corner.

“The reason we are dealing with this is because we overpaid for the purchase,” the Village of Gilchrist resident said. “I don’t think we have much of a choice. Although it pains me to say that.”

Director Rick Rademacher said the purchases were clouded with misleading information.

“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,” Rademacher said.

Director Ellie Decker chided her fellow board members for “beating a dead horse” and said the board needed to deal with the problem at hand.

After other motions died for lack of a second or were voted down, a motion was made to immediately raise rates by 10 percent and have a workshop for directors to discuss future rate increases.

The only vote against that motion came from Director Nicolas Hemes. He originally tried to abstain, but was warned by District counsel that he was required to vote for or against the motion.