A proposed 8.5 percent water and sewer rate increase for South Santa Rosa Utility Services (SSRUS) customers in just the 32563 zip code has sparked controversy.

“This is basically taxation without representation,” charges Mike Robertson, owner of Mike’s Garden on U.S. Highway 98 at Tiger Point and a board member of the United Peninsula Association (UPA).

Gulf Breeze News first reported Sept. 24 that the SSRUS board had voted to recommend the zip-code-specific increase. The Gulf Breeze City Council scheduled an Oct. 19 public hearing to discuss the matter.

The City of Gulf Breeze owns and operates the SSRUS. City manager Buz Eddy spoke to the September meeting of the UPA, which consists of 12,000 members including 19 homeowner associations, 11 businesses and interested individuals.

Members were more interested in discussing the proposed rate increase than hearing about additional business development planned in Gulf Breeze Proper and the region.

In January, these same 32563 customers were hit with a 4.7 percent increase. Gulf Breeze customers received an approximate 4.9 percent increase, according to Thomas Lambert, Assistant Director of Gulf Breeze Public Works.

“The SSRUS, whose advisory board members include the Gulf Breeze Mayor and a City Council member, has recommended an 8.5 percent increase for those in the 32563 area, and the City Council will vote on this matter,” Robertson said.

“We don’t get to vote in City of Gulf Breeze elections. We didn’t elect them.”

The SSRUS board is comprised of Otto Prochaska, Terry Mills, Dick Fulford, Richard Snyder, Robert Sauer and Thomas Naile. At the Aug. 18 meeting, Prochaska, Fulford, Terry and Snyder were in attendance and voted 4-0 for the proposed rate increase. Fulford and Prochaska live within city limits, and Terry and Snyder live outside city limits. All board members are appointed. Mayor Beverly Zimmern serves on the board but does not vote.

Under the proposal, base residential sewer rates would increase from $11.58 to $13.90. The rate per 1,000 gallons would rise from $3.71 to $3.90.

Base residential water rates would increase from $11.84 to $12.90. The rate per 1,000 gallons would rise from $2.57 to $2.70.

Eddy said the 8.5 percent increase was necessary to keep the enterprise in the black.

“We have had 12 percent less revenue in the water side and 16 percent less revenue in business sewer taps in 2009 than 2008,” he said. “Yet, we still have the debt service to be paid until 2012 when one of the bond issues will be paid off.”

Eddy also mentioned budget woes and possible staff layoffs.

Eddy said the increase was only targeted to users in the 32563 zip code “because this area uses a different cost system.”

In 1989, the City of Gulf Breeze had an urgent need to address sewage issues. Faced with those problems, the option was either to build a newer facility or make other arrangements. Robertson said the City of Gulf Breeze decided to purchase the treatment and disposal facility located at the thencalled Santa Rosa Shores Country Club.

“In effect,” said Don Richards, UPA President, “Gulf Breeze subsidized their utility operation by acquiring another treatment plant. However, if you look at Ordinance 08-89 that authorized Gulf Breeze to lease water and sewer services outside the city’s corporate limits, it was set up specifically to differentiate service rates for those whose lived in Gulf Breeze Proper and those who lived in the ‘improper.’”

Ordinance 08-89 states: “No water or sewer service shall be rendered free of charge to any person, firm or corporation, nor will any preferential rates be established or allowed for users of the same class. Notwithstanding the foregoing, however, when the City diverts to South Santa Rosa Utility, Inc. its sewage and waste water flows currently treated by the City’s treatment facilities, the City will pay the utility only the incremental costs of transmitting and treating such flows.”

“I understand the need for a rate increase if it is applied evenly to everyone who uses the system,” Robertson said. “But the city’s residents are all benefiting from having their sewage piped to the treatment facility.”

Richards was among those who attended Monday night’s SSRUS advisory board meeting.

“My biggest disappointment is that the issue appears to have been already been predetermined by four people on a seven-member advisory board, although the Mayor doesn’t vote,” Richards said. “From the available SSRUS minutes, the same four people always vote unanimously for whatever staff recommends. Not all issues are black and white or whether an issue is within legal bounds.

“Their principle should be, ‘is it the right thing to do?’”

The public hearing is scheduled for Gulf Breeze City Hall on Oct. 19 at 6:30 p.m.

BRIEF HISTORY OF THE SSRUS

South Santa Rosa Utility System, provider of water and sewer service for the area east of the City of Gulf Breeze, was founded in 1958 as Santa Rosa Shores Utilities, Inc. to service the Santa Rosa Shores and Bay Ridge Park developments. In the early 70’s, capacity of the sewer treatment plant was increased to accommodate the addition of Polynesian Islands and eventually Tiger Point Village.

In 1982, John S. Carr & Associates bought the property and changed the name to Santa Rosa County Utilities, Inc. In 1985, Carr and his associates acquired the neighboring Gulf Isle Utility system, which served the Villa Venyce and Whisper Bay areas.

The City of Gulf Breeze purchased the utility in 1989 and entered into a management contract with Florida Community Services to oversee the day-to-day operations of the utility. The name was changed to South Santa Rosa Utilities, Inc.

The period of 1989 through 1996 saw tremendous growth when Grand Pointe, Crane Cove and Tiger Trace were added to the utility system, along with Lighthouse Pointe, Shadow Lakes, and Sound Forest as sewer-only customers in the easternmost area of the utility’s franchise. Another major expansion in the wastewater treatment facility was needed at this time to handle the growth.

In 1996, the City assumed full management of the utility, which was then given the name it bears today.