ISSUE:

Adoption of Resolution 20-03 establishing the Chapter II Rule (Rule) of the North Sumter County Utility Dependent District for Water and Sewer Rates, Fees and Charges, and Operating Policies and Procedures for Central Sumter Utility (CSU).

At the September 2019 meeting, the North Sumter County Utility Dependent District (NSCUDD) entered into an Agreement for Purchase and Sale of the Central Sumter Utility Company, LLC.

Subsequent to that, the Board provided authorization to advertise for the establishment of a Rule to have rates for the CSU system in place at the time of the anticipated acquisition. 

Chapter 189 of Florida Statutes and Sumter County Ordinance 2010-10 permits NSCUDD to adopt and enforce rules and regulations to, among other things, prescribe, fix, maintain and regulate fees.  The adoption of a Rule by a special district in the State of Florida is similar to adoption of an Ordinance in a city or county government.  The establishment of a Rule requires a 10 day advertisement notifying the public of NSCUDD’s intent to develop a Rule, followed by a 28 day advertisement providing notification that a public hearing will be held to adopt it. 

The Chapter II Rule (attached) has been established in line with the policies and procedures the NSCUDD Board adopted for the North Sumter Utility (NSU) acquisition. 

The Schedule ‘A’ attachment maintains the existing rates charged to residential properties, with the exception of an Environmental Rate Protection Surcharge, which is instituted during a declared water shortage by the respective water management district, and an annual rate adjustment of 2.50% for the next ten (10) fiscal years.  Additionally, a tiered rate structure based on gallons used has been established for commercial customers.

The Schedule ‘B’ attachment, “Miscellaneous Fees and Charges” establishes rates that mirror those charged for the NSU system to establish continuity in service.

The proposed rates outlined in the attachments have been presented to the rating agencies and potential bond holders as anticipated approved rates. 

Staff recommends the NSCUDD Board adopt Resolution 20-03 establishing the Chapter II Rule (Rule) of the North Sumter County Utility Dependent District for Water and Sewer Rates, Fees and Charges, and Operating Policies and Procedures for Central Sumter Utility (CSU).

Motion to adopt Resolution 20-03 establishing the Chapter II Rule (Rule) of the North Sumter County Utility Dependent District for Water and Sewer Rates, Fees and Charges, and Operating Policies and Procedures for Central Sumter Utility (CSU).