Board members have balked at a 25 percent increase in water rates for 14,000 homes in The Villages.
The North Sumter County Utility Dependent District on Monday at SeaBreeze Recreation Center looked at two possibilities for rate increases that could be enacted this year.
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.
Board members were told Monday that the systems will require $26.1 million in capital needs through 2032. A consultant told the board the solution for paying for those capital improvements would be a logical step forward.
Two rate increase options were proposed:
1. An immediate 25 percent increase, followed by 3 percent annual increases
2. Three years of phased-in 10 percent increases, also followed by 3 percent annual increases.
NSCUDD Director Richard Rademacher, a resident of CDD 10, said the board had been convinced the systems were in fantastic shape and only needed minimal upkeep.
“We were sold a system that was ‘almost brand new’ and didn’t need much work,” said Rademacher, who noted he voted against the purchase.
He said NSCUDD directors made a promise to residents that they would be very careful about rate increases.
He reminded fellow board members of another ill-fated 25 percent increase.
“A few years ago, the Sumter County commissioners voted to raise property taxes by 25 percent. 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 percent all at once or over a three year time period and to then increase our yearly compounded rates,” he said.
Newly elected NSCUDD Director Dan Warren, of the Village of Gilchrist, reminded the board that two years ago as a resident he objected to the $111 million purchase of SWCA.
“It was a big mistake. I put up the red flags,” Warren said.
NSCUDD Director Ellie Decker also said she was not going to dump the problem in the laps of the residents.
“I don’t believe in passing everything on to the consumers. Not everybody realizes we have villas where we have widows and when a spouse dies, they are only getting one Social Security check,” Decker said.
She said cost control is imperative.
“Everyone in the supply chain needs to tighten their belts,” she said.
No one on the board indicated a desire to move forward with the 25 percent rate hike.
There was great reluctance to move forward with the 10 percent rate hikes phase in over three years.
The board will revisit the issue at the February meeting.
