Friday, January 2, 2009

Florida Keys property owners could face $20,000 fees to connect to central sewer systems if Monroe County cannot secure federal and state subsidies, which are becoming increasingly harder to come by in this national economic crisis.

That's a far cry from the $2,700 that property owners on Conch Key and in Bay Point in the Saddlebunch Keys paid several years ago, and the $4,500 that Monroe County in 2007 agreed it would charge property owners on Big Coppitt Key and in the upscale community of Duck Key -- when subsidies were available.

Now, with the state-mandated July 2010 deadline looming to have all Florida Keys properties connected to a central sewer system, the worse-case scenario seems possible. Monroe County may not receive any of the $200 million bond the Florida Legislature promised to deliver but has not officially allocated.

"We have always tried to do it in the most equitable way," Monroe County Mayor Neugent said. "There is a possibility of this happening, not getting the subsidy and the ... [state] enforcing [the deadline]. The connection costs could be more equitable if the state Legislature could extend the time frame or if we get the $200 million."

The inequality question has begun brewing as Monroe County proceeds with its Cudjoe Regional Wastewater System, a $194 million plan to build a central treatment plant on Cudjoe Key to serve 10,000 homes and businesses from Lower Sugarloaf Key to Big Pine Key. Especially since, in hindsight, the county made three crucial errors that could have increased its chances of securing the subsidies, Neugent said.

First, the county over the past several years has committed too much infrastructure money that could have been used for subsidies on other projects, a frequent complaint of Neugent.

"We have $4 to $5 million of infrastructure money tied up in toys, i.e. the Hickory House and the Vandenberg" artificial reef project, he said. The county spent $1.3 million buying the vacant Stock Island restaurant and marina, and has committed $2 million to sinking the decommissioned military ship six miles off Key West.

Second, the county several years ago failed to borrow money for connection fees and construction costs from a state revolving loan program with little interest tacked on. The Florida Keys sewer upgrades could have been completed by now if the county had done so, Neugent said.

Third, Neugent last year decided against requesting a 1-cent sales tax increase that could have generated $30 million a year for subsidies, with half of that coming from tourists. Neugent said he did so at the urging of state Rep. Ron Saunders, who told him it could jeopardize the Legislature passing the $200 million bond.

Neugent said he is considering asking the County Commission to make that request now, for the March legislative session.

"I think we have to do it," he said. "I will certainly argue on behalf of the residents of Monroe County, if the state does not pony up their fair share of the bargain.

"We're going to Tallahassee before the Legislature goes into session and on the first day of the session, I want to talk to [Department of Environmental Protection Secretary] Mike Sole and whoever will listen to make them understand the ramifications if they don't give us the $200 million."

The Florida Keys Aqueduct Authority recently held two meetings in the Lower Keys to give homeowners and business owners an analysis and evaluation of several different sewer systems that would be part of the Cudjoe Regional Wastewater System, for which the county already has allocated $3 million of the $5 million needed to design it.

Utility officials discussed what areas would need smaller on-site systems and what communities should be connected to central systems.

Once installed, the systems would require little maintenance, utility spokeswoman Colleen Tagle said.

tohara@keysnews.com