Florida Governmental Utility Authority acquires 71 US water and wastewater systems

The Florida Governmental Utility Authority (FGUA) has completed the acquisition of 71 water and wastewater systems from Aqua Utilities Florida, a division of Aqua America, for $50m.

The FGUA-acquired water and wastewater systems are located in 12 Florida counties, namely Alachua, Citrus, Hardee, Lake, Lee, Marion, Orange, Pasco, Polk, Putnam, Seminole and Volusia.

The acquisition of the water and wastewater systems from Aqua Utilities was approved by the board of FGUA in December 2012.

Post acquisition, about 22,270 new connections has been added to the authority’s existing system, taking the total number of connections in Florida to over 112,000.

To fund the purchase, the authority issued three separate bonds: one for Pasco County, the other for Lake County and the last for all other systems.

Florida Governmental Utility Authority system manager Robert Sheets said the utility has executed the documents to put the acquired systems under government ownership and management.

"After a year of careful evaluation, analysis and negotiation of a complex transaction, we successfully secured bond financing at rates favorable to customers to purchase and improve these systems," Sheets added.

"There will be a brief operational transition period when Aqua will continue providing interim services, but we’re confident that customers will notice a public service difference very shortly."

It is expected that the utility will benefit its customers through improved service, and improved water and wastewater operations and reliability.

Post acquisition, the utility will not increase rates and will make subsequent changes that will be limited to inflation adjustments for the next five years.

FGUA is a state-wide governmental water and wastewater utility that is governed by inter-local agreements among member governments.

FGUA owns and operates water and wastewater service for military personnel, their families and civilian contractors working at MacDill Air Force Base in Tampa.

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Image: Florida Governmental Utility Authority purchased 71 water and wastewater systems to improve customer service and water reliability. Photo: Courtesy of Vincent de Groot.