Mad Hatter Deal Could Raise Your Water Rates

Customers of and Paradise Lakes utilities may soon find themselves paying their water bills to a different company.

The Florida Governmental Utility Authority has announced a $14 million purchase agreement for the two private water systems. FGUA has sent letters to Mad Hatter and Paradise Lakes customers announcing the agreement.

What do you think about the proposed sale? Let us know in the comments section.

The governmental agency anticipates the deal will be finalized sometime in June. When that happens, customers will see their rates increase, but not by as much as Mad Hatter recently proposed to the Florida Public Service Commission.

Mad Hatter is a private water utility company that serves several neighborhoods in the Lutz and Land O' Lakes areas of Pasco County. Some of the areas it serves include Foxwood, Turtle Lakes, Paradise Lakes and Cypress Cove.

Citing a need to make $3.4 million in system improvements, FGUA said in an April 13 letter to customers that rates will go up to $89.29 a month for those who currently use about 6,000 gallons a month. Mad Hatter had proposed raising the cost of 6,000 gallons to $103.95.

Customers in the Foxwood and Turtle Lakes subdivisions currently pay $51.28 a month for 6,000 gallons. Those in Linda Lakes pay $43.24. Paradise Lakes was not included in Mad Hatter’s request for a rate hike.

“The rate increase would take effect on the date the FGUA purchases the system,” the letter stated. “Also, the FGUA has plans to meet future water supply needs with purchases from Pasco County, rather than the development of expensive alternative supply sources which the current owner would have pursued. This should eliminate the prospect of other large increases looming on the horizon.”

Where You Can Learn More

FGUA will play host to a public meeting to discuss the proposed purchase on May 15 at 6 p.m. at Holy Trinity Lutheran Church, 20735 Leonard Road in Lutz. Customers who have questions are invited to attend the public hearing.

For more information about the proposal, call Matt Rihs of FGUA at 727-372-0115.

Stay with Patch for more details on the proposed sale as they become available.