“The $115 million grant was pronounced all but dead in August when FEMA’s Scott Morris told U.S. Sen. Bill Nelson that Emerald Coast Utilities Authority was not legally eligible for the money.”
So two months ago the ECUA board knew the likelihood of getting additional funding from the federal government was slim. They hung their hats on a clause that FEMA might interpret as grounds for the extra $115 million.
What kind of leadership is that? Managing on a slim hope for funding isn’t management.
Face it. $115 million isn’t that much money when you’re talking about building a plant that will last fifty-plus years – help clean-up Pensacola Bay – and will open up a large section of mid-Escambia County to sewer. It’s less than $3.833 million a year when spreadout over 30 years.
ECUA can pay for the $115 million through tap fees and rate increases spreadout over 30 years.
If ECUA would raise its tap fees – the cost of hooking up to the system – by $4000 and raise its rates just $5 per month. It could pay off a note for the $115 million in 30 years based on two growth assumptions – 100 new homes would be built in the county every year and the sewer customers would increase by 1.25% a year. If they wanted, ECUA could stagger the rate increase and make it larger in later years.
Why is ECUA making this harder than it is?