In order to actually receive Stewardship funds each year, the Village must apply to DEP to have the specific Village projects approved as part of a grant application. It is up to Islamorada to decide what projects are priority.
Our concern remains this. Wastewater is an Enterprise Fund. Enterprise Funds by definition are self-supporting funds. User fees are established to pay expenses.
For years the wastewater fund has not been self-supporting. Instead of addressing the problem by reviewing user fee revenues and cost efficiencies, the village chose to transfer significant money from other funds and to apply for state and federal grants. So “Peter has been paying Paul.”
Why have there been wastewater deficits? One major reason: raw sewage leaks at MM92 in Tavernier – starting in 2019. An apparent design flaw in the system. For at least the last 4 years the village budgeted $2 million each year to fix the problem. The money was spent but the problem wasn’t fixed.
The same story repeated each year– engineers from Key Largo and Islamorada couldn’t agree on how to fix the problem. Have they reached an agreement yet? This year the fix is in the budget again, but now up to a $4 million cost, using Stewardship Funding to bail out an enterprise fund.
Sue commented that the budget approved last year had $3.5 million Stewardship funding for canal restoration, an acceptable use. This year Stewardship funding of $4 million is in the wastewater fund to fix the MM92 leaks, a request from the Village. They did in fact decide to “borrow from Peter to pay Paul.” Otherwise Peter Frezza’s canal projects could have gotten the $4 million. And Paul isn’t likely to pay back Peter.
The Council certainly knows that there is a serious problem with wastewater. We’ve been talking about it for years. We need to stop talking and fix it: fix user fees and cost efficiencies so that the Wastewater Fund is a legitimate Enterprise Fund that is self-sufficient without borrowing from Peter, literally and figuratively.
To Council: Mr. Horton fussed at Sue at last week’s hearing about her public comment. But she is not the one that deserves criticism about the monumental wastewater problems. The problems are costing taxpayers in Islamorada millions of dollars annually, year after year. She is just reminding you to finally do something. Having a reliable wastewater system is crucial to all of us and our environment.
We wish you all much luck. Hopefully this year wastewater concerns will be addressed and fixed. And Peter can get back to his efforts with adequate funding. And so can Paul - with his own enterprise funds. And Sue can smile during wastewater discussions.
One more lesson from the Vice Mayor. Mr. Horton did some homework last week too. He noted Sue was complaining about increases in Village spending. He had gone to the trouble of checking her tax bill and found that the Islamorada taxes on her home were actually less in 2024 than in 2021.
Mr. Horton, Sue was not voicing concern about her personal situation, and you shouldn’t either. She was speaking about Islamorada taxpayers in general. Her home is homesteaded. But think about non-homesteaded properties. They are seeing significant tax increases. We checked a rental home in Islamorada that has actually been rented long term several times since 2021 to Village employees. That rental property saw Islamorada taxes up 18% in three years. That’s what we all need to worry about.
Because of Florida Homestead laws, the taxes (and insurance) are making it more and more difficult to own long term rental housing, business properties, and second homes. All critical to the Village’s economy. So we say to Horton and the rest of the council: always look at the broad picture – not your personal picture. That’s what public servants do.
Reply to: ICA.in.Keys@gmail.com
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