Anthony Westbury on the CFP and FPUA

Anthony Westbury: Fort Pierce, FPUA need to talk more, build trust

Staff Reports

Originally published 05:36 p.m., September 21, 2011
Updated 05:36 p.m., September 21, 2011

Polite but dysfunctional.

Rather like family members who don't talk to each other unless they absolutely have to, the Fort Pierce City Commission and Fort Pierce Utilities Authority haven't been exactly close for a while. In fact, I can't detect much cooperation between two organizations that should be joined at the hip.

Mutual mistrust has been simmering for a year or more since the city accused the FPUA of holding back some of its annual transfer payment. After months of argument, the two entities reached a settlement where the FPUA paid $200,000 to the city. The experience seems to have left a bad taste in mouths on both sides.

A month ago, I wrote about the latest salvo the city lobbed in the utility's direction.

Apparently, the $4.9 million annual payment the FPUA makes to the city is not enough for some at City Hall. Under the terms of the city charter, the city is entitled to 6 percent of the gross revenues generated by the FPUA.

City Manager David Recor and Finance Director Gloria Johnson, however, have decided that power cost adjustment payments (which reflect the ever-changing price of fuel to generate electricity) should also be subject to the 6 percent rule. Gaining that extra few percent would add $1.5 million to the city's bottom line for fiscal year 2012.

The FPUA has always maintained the PCA is a "pass-through" charge; it does make any profits on it, so why should it be "taxed" on it?

However, Recor and City Attorney Rob Schwerer claim the city is being shorted. Schwerer is also of the opinion that some "tweaking" of the language of the city charter is all that's needed to make the changes without a formal voter referendum.

Not so, according to FPUA's attorney Rupert Koblegard. He's convinced the proposed change would require a public vote.

Should it come to that, it's no slam-dunk the electorate would say yes. Koblegard at a FPUA board meeting this week raised the possibility the city could be faced with a class-action lawsuit if the deal results in higher electricity rates.

The city came up with its plan at a hastily organized morning meeting a few weeks back. It was so sudden, the FPUA board hasn't had time to fully discuss the issue, so the utility will hold a public workshop next week to examine its options.

Neither side is entirely blameless in all this.

The city, faced with a budget shortfall, seems to be looking to the FPUA like a rich uncle who can bale it out. Some city officials have long felt the FPUA holds back too much money in its reserve funds. FPUA officials counter they'll need those large reserves if a hurricane strikes.

There's been criticism from some city commissioners that the utility hasn't made as many reductions in budgeting or staffing as it might have. There's a suspicion the FPUA has a lot more fat still to cut. I'd say that's also true of the city, which should be looking harder at its own finances before trying to grab someone else's money.

I hope all four city commissioners will find the time to attend next week's workshop. The mayor has to be there as an FPUA board member.

It's high time the two sides sat down and hammered this out. If they don't, it's clear who will suffer the most: the poor, beleaguered rate payers. Fort Pierce has more than its share of poor customers who cannot bear the higher electric bills this money grab might entail.

Raising rates to pay for all this could also have adverse impacts on FPUA's commercial customers, who already are saddled with higher rates than their residential counterparts. Fort Pierce has far too many empty commercial properties as it is. Let's be very careful introducing new charges that might accelerate that unfortunate trend.

We need an open forum to discuss all these ramifications. A plea to both boards: More sunshine, please.

Anthony Westbury is a columnist for Scripps Treasure Coast Newspapers. This column reflects his opinion. For more on St. Lucie County topics, follow his blog at tcpalm.com/westbury. Contact him at 772-409-1320 oranthony.westbury@scripps.com.

http://www.tcpalm.com/news/2011/sep/21/anthony-westbury-fort-pierce-fpua-need-to-talk/