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Our county commissioners (3/5 of them, that is), hell-bent on showing how responsible they can be (not!), voted to abolish the special taxing district they created three years ago to help fund sewering of Big Coppitt Key.  It just gets interestinger and interestinger.  From the July 26 Key West Citizen:

Commissioners dissolve Big Coppitt taxing district

Action removes funding mechanism for sewers

BY SCOTT FUSARO

AND TIMOTHY O'HARA

Citizen Staff

MARATHON — In a move that threatens to further sour the county's deteriorating relationship with Tallahassee, the Monroe County Commission voted Monday to dissolve a taxing district created to fund wastewater treatment on Big Coppitt Key and surrounding areas.

The County Commission created the taxing district three years ago to help pay costs incurred by the utility for a sewer system on Big Coppitt Key. The tax would have raised $182,457 next year.

The action, taken during a budget hearing Monday in Marathon, is the latest maneuver in an ongoing turf war between the County Commission and the Aqueduct Authority over which agency controls sewer projects — and more than $100 million in construction contracts — in Monroe County. The commission voted last week not to fund Aqueduct Authority sewer projects in the county, and to absolve itself of responsibility for meeting a state-mandated 2010 deadline for sewering the Keys.

County Mayor Dixie Spehar, in a move some interpret as a diplomatic faux pas, refused to allow state Department of Community Affairs Secretary Thaddeus Cohen to address the commission on the issue. DCA oversees growth management in the Florida Keys, which have been an Area of Critical State Concern for three decades.

Deal jeopardized?

The commission's refusal to fund Aqueduct Authority projects has raised concerns about county compliance with an agreement hammered out last year between the county, the DCA and the state Department of Environmental Protection.

In that deal, the county would be allowed to issue construction permits for 255 new homes each year in unincorporated Monroe — 97 more than its previous annual allotment. The county also would be allowed to issue 181 permits previously withheld by the state due to the county's failure to make substantial progress toward meeting the goals of its land-use plan. The state also agreed to spend $93 million over three years for the acquisition of environmentally sensitive land in the Keys.

In exchange, the County Commission and Keys municipalities agreed to bond $200 million to finance sewer projects, to take measures to protect native hardwood hammocks and pinelands, to find ways to provide affordable workforce housing, to improve hurricane evacuation times and to launch stormwater treatment projects.

On Thursday, the day after the commission's funding decision, Assistant County Attorney Bob Shillinger advised commissioners and county officials via e-mail that he had been contacted by DCA Deputy General Counsel David Jordan. Jordan, according to the e-mail, told Shillinger the DCA "would find it difficult to recommend [to the governor and state Cabinet] that the county was in 'substantial compliance'" with the agreement.

Shillinger said Jordan cited both the county's policy on classifying sensitive land and its decision not to fund wastewater projects.

The county is required to submit an annual report on it progress to the governor and Cabinet in October.

Fight for control

The rift between the Aqueduct Authority and the county began in 2000, when state Rep. Ken Sorensen, with County Commission support, sponsored legislation allowing Key Largo to form its own wastewater board to oversee projects in that Upper Keys community.

Another Sorensen bill earlier this year would have taken wastewater authority in Marathon away from the Aqueduct Authority, diminished its ability to let bonds and called for a referendum on how the utility's board was selected. Gov. Jeb Bush vetoed the legislation.

As things stand now, the Aqueduct Authority remains the legislatively-designated wastewater authority for most of the county, but it does not have the taxing authority needed to guarantee funds to pay for sewer construction. The county, which has the necessary taxing authority, refuses to fund Aqueduct Authority projects.

The taxing district dissolved Monday was created to help pay sewer costs on Big Coppitt Key and was to collect tax revenue through 2008. When the district was created, the county signed an agreement with the Aqueduct Authority turning the money over to the utility.

The cost burden

The utility now appears to have few options outside of passing the full cost of the project to property owners.

Aqueduct Authority Executive Director Jim Reynolds said the move would make progress on the Big Coppitt Key sewer plant more difficult, but the public utility would move forward.

"We are going to proceed with the documents and proceed with getting proposals and then we will be looking to the county to get funding and to the state," he said.

Mayor Spehar and Commissioners Charles "Sonny" McCoy and Murray Nelson voted to dissolve the district. Commissioners George Neugent and David Rice voted against it.

"No matter who does it, somebody is almost certainly going to sewer Big Coppitt when it's all said and done," said Rice, arguing for leaving the fund intact. Rice is married to the chairwoman of the FKAA board of directors.

The district has accumulated $170,474, all from the current fiscal year, according to county figures. The money was collected for the specific purpose of sewer upgrades and any remaining funds after the utility is reimbursed for costs it has incurred up until now must be refunded to property owners, County Attorney Richard Collins said.

County Clerk Danny Kolhage told commissioners the procedure for refunding taxes already collected is a "tedious" process that could drag on for years.

Blame game

Nelson said Monday he would attempt to have legislation similar to the bill vetoed by the governor reintroduced next session to break the standoff with the Aqueduct Authority. Nelson accused the state of reneging on an agreement to provide some $30 million for wastewater projects.

"The county has already provided $20 million of our match, and the state has not provided its match," he said, calling the state in "breach" of the agreement.

"We will not get where we want to go" by alienating the governor and state officials, noted Rice. He and Neugent blame local delays for preventing a Big Coppitt sewer project from getting off the ground.

sfusaro@keysnews.com

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