LETTER TO THE EDITOR

First, let me say again that you are doing an excellent job in keeping us informed about the inside factual details and the mismanagement of the process involved in the proposed sale of the Vero Beach electric utility.

It seems to me that the projected financial benefits to Vero Beach residents and taxpayers that were used to drive support for this sale have been lost. But, the city council and management are pressing on regardless. They appear to be so invested in the proposed sale as constructed, that they are blindly pushing forward, spending more taxpayer money in the process. A corporation with so much at stake would step back, re-evaluate the risks and rewards of the new situation, then act solely in the best interests of its shareholders – in this case the taxpayers of the City of Vero Beach.

As a city resident and taxpayer, I am now completely mystified as to what benefits will accrue to me and other city taxpayers if this sale were to go through, which seems unlikely under present conditions. This is especially true when the deal depends on 20 other cities having to grant a waiver to Vero Beach and, at the same time, contractually agree to cut off their future options in that they will never be able try to sell their utility interests and leave FMPA.

Rather than drag this on to an inconclusive outcome, the city council should tell city residents the facts about the most probable, bottom line outcomes that will affect them directly. Then, Vero Beach City residents, only, should be permitted to vote on whether to continue to spend money and time on this project. This might have the positive outcome of forcing FPL to be far more realistic and generous in its offer to buy Vero Electric on terms that will provide tangible and lasting benefits to city taxpayers, especially if FPL wants to buy up other independent electric utilities in Florida.

So, my simple questions are below. Would you please get the city council to answer them for the many Vero Beach taxpayers who voted to go forward with this scheme by publishing the answers for all to see the real consequences of continuing along this path and to provide the taxpayers the opportunity to give informed direction to the city council.

If this deal were to go to conclusion in the form it is being pursued by the city council:

1. Will a 20 percent reduction in electric rates for city residents and taxpayers be achieved with this deal, as structured?

2. My annual combined meter bill and fuel cost bill is about $2,300 per year. If the answer to question #1 is yes, does this mean that my electric bills for the year will be reduced by $460 given the same usage?

3. If the answer to question #1 is no, by what percentage will electric utility rates be reduced? How would it apply in dollars for the example given?

4. For how many years will this reduction in rates be guaranteed to be in place without change?

5. As the city of Vero Beach would lose the excess revenue from electricity receipts that partly funds city services, will my combined, annual, city-related taxes, including real estate taxes, increase, if this deal goes through?

6. If yes, by how much on a current combination of city-related taxes.  Assuming someone has a home assessed at $300,000, with a homestead execution, and is using $2,500 per year in electric power, what would the electric savings be, and how much would total taxes increase, including property taxes, the proposed 6 percent franchise fee, etc.?  In other words, under current deal conditions, is there any financial benefit in continuing to spend money for at best a null outcome; or worse a deficit outcome for the city taxpayers?

7. If there is no substantial long term net saving to the Vero Beach taxpayers, why are the representatives of the city taxpayers continuing to pursue this expensive and disruptive debacle?

Thank you for considering this proposal and I hope that you are able to deliver and publish definitive answers on what should be a straightforward analysis.

Derek Hanley