Opinion – Asking the Legislature to decide a local issue isn’t exactly true conservatism

Rep. Debbie Mayfield
Rep. Debbie Mayfield

State Rep. Debbie Mayfield vowed this week to introduce a measure in the next legislative session that, if passed, would prevent the City of Vero Beach from continuing to provide water and sewer service to residents in the unincorporated area of the south barrier island.

Mayfield’s willingness to ask the Florida Legislature to take sides in a dispute between the city and the Indian River County Commission seems ironic, given her espoused conservative political philosophy that derides big government intrusion in local affairs.

Concern over “nameless and faceless bureaucrats” telling cities and counties what to do was certainly one of the arguments offered by members of the Indian River Tea Party and the Indian River Taxpayers Association for why the county should end its participation in the Seven50 regional planning group..  Opposition to “trickle down government” and big government intrusion in local matters has, until now, been one of their constant refrains.

If her conservative colleagues in the Legislature remain true to their principles, Mayfield may find it difficult to persuade them to take sides in a local matter.

And even if enough political favors can be traded to gain passage of a special act of the Legislature, there is still the question of how a 1989 territorial agreement is to be interpreted.  That agreement establishes “in perpetuity” the portions of the city’s service area extending beyond the city limits into the county.

The county’s dispute isn’t over the meaning of the phrase “in perpetuity.”  Rather, county officials argue the phrase should be considered an integral part of the agreement.  Never mind that the words “in perpetuity” are there in black and white.

It would be one thing for Mayfield to propose a law requiring municipalities to obtain consent from county commissions before extending utility services into territories already designated by those counties as their urban service areas.

In the case of the current dispute, it was at the invitation of the county that the city agreed back in 1987 to offer water and sewer service to the south barrier island.  Now that the county has built its own underutilizes water and sewer system, the County Commission is looking for more customers.

To that end, the county earlier this year attempted to persuade Indian River Shores to switch to county utility services rather than extending its franchise agreement with the city.  When the city offered to give its Indian River Shores customers county rates, the Town Council chose to remain with the city.

Within the past year, the county also made an offer to buy the city’s water and sewer system.  Supporters of the county’s attempt to take over the city’s utility argue that governments should not be in the utility business.  Seemingly, they ignoring the fact that the county is, itself, a government.

Beyond the county’s posturing about wanting only what is best for the residents of the south barrier island is the real reason why it wants to force the city to give up its 2,000 south barrier island customers.  That reason can be summed up in two words: excess capacity.

In the middle years of the last decade, the county expanded its water and sewer capacity well beyond current demand.  Simply put, the county needs the city’s customers in order for its system to be profitable.  But while the county may be licking its chops over the city’s system, Vero Beach’s water and sewer utility seems to be doing just fine.

On gross revenues of $17 million, the city’s water and sewer utility contributes $1 million a year to the General Fund.  This year the system will also contribute $1.8 million to reserves, and another $1.7 million to long-term capital improvements.

According to Water and Sewer Director Rob Bolton, even though the city and county have different rate structures, they are, overall, revenue neutral.  If that is true, it is hard to make the case that south barrier island residents would be better off as customers of the county, especially since the city has agreed to charge those customers county rates.

Looking ahead to the proposed sale of Vero Electric, the city’s water and sewer system stands to save $300,000 or more in power costs.  Those savings can either make the system more profitable, or they could be seen as justification for reducing rates.

Also lost in Mayfield’s attempt to force the city to turn its south barrier island service area over to the county is the question of property rights.  From the point of view of city officials, it was only with the understanding that the service area had been established “in perpetuity” that long-term investments were made to install and main utility infrastructure to serve the residents of the south barrier island.

Who has a right to the system and how much it is worth is a decision that may well have to be made by the courts, regardless of what they Legislature decides to do with Mayfield’s proposed legislation.

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