FGUA BOARD APPROVES PURCHASE OF DUNNELLON UTILITY SYSTEM
Thursday, December 21, 2017
At its December 18, 2017 meeting, the FGUA Board of Directors approved a Purchase and Sale Agreement for the FGUA to acquire the City of Dunnellon’s water and wastewater utility system.
It also approved a three-party interlocal agreement between the City, FGUA and Marion County providing for the county’s consent and partnership in the acquisition. The agreement follows negotiations spanning over a year in response to the City’s interest in divesting its utility to reduce high debt, stabilize customer rates and ensure important capital projects are completed.
The City reached out to the FGUA in recognition of its 18-year track record of acquiring and improving challenged utility systems throughout Florida. The acquisition relies on approval of a low cost US Department of Agriculture Rural Development loan to replace the City’s current debt, thereby avoiding rate increases otherwise required under continued city ownership, and holds customer rates constant for at least two years.