Officials of Deltona have had plenty to do since becoming a city in 1995. While one might think the purchase of an existing water plant might not be high on the "to do" list, city officials are about to wrap up a long and complicated process of purchasing the water plant that has served Deltona residents since 1962.

In fact, ownership of the utility is something city officials and residents have endorsed for years. "At this point, the deal essentially is done," said Mayor John Masiarczyk, who has been involved in the process from the beginning. "We were fortunate to be unified as a city commission on this issue. We were fortunate to have been able to work with the county in affecting the purchase. And we were fortunate to have support throughout the community. It is what's best for the City of Deltona and this will serve our growing population well."

Deltona city officials (left to right)
Ken Runge, Mayor John Masiarczyk, Lucille Wheatley, Bill Harvey, Doug Horn, Michelle McFall, and Diane Obremski pose inside the newly purchased Deltona Water Services facility.

Florida Water Services' Deltona system initially was put on the market as part of a systemwide package deal that appealed to the north Florida cities of Milton and Gulfbreeze. They were interested in the $429-million package deal for its profit potential. But there were complications including Florida Public Service Commission concerns, lawsuits, a veto from the Governor's Office, heated legal debates and more.

Ultimately, the city was able to navigate through rough seas and, with the assistance and cooperation of Volusia County Government, was able to resume efforts to purchase Florida Water Services Corp. from its parent company, Allete Inc., Duluth, Minnesota. But those efforts were slowed by still more challenges.

The city's charter did not anticipate such a deal. The city commission realized it needed to change its charter, which capped bonding capacity at $15 million and mandated a three-year payback, hardly the kind of money or term that could cover the purchase of a water plant. The charter was changed in 2001.

Then Florida Water Services Corp. became the target of Milton and Gulfbreeze, their interest seen as a mercenary move by disappointed Deltona officials. As a countermeasure, the County of Volusia was asked to exercise its right of first refusal to purchase the plant. The county agreed that if the city could close a deal on the water plant, it would step aside. The on again, off again deal was on again and the attempted coup by Milton and Gulfbreeze was killed.

Now it was up to Deltona to ensure its financial house was in order and to hit the road and sell itself as a bond-worthy client. The city presented a formidable financial position to the bond houses. City officials demonstrated the city could provide water with no rate increase for five years and still pay the debt that would be required to purchase the plant.

Additionally, rather than just bond enough to purchase the system, city officials upped the figure from $59.9 million to $81.7 million to allow for repairs, upgrades and enhancements to the water plant. So solid was Deltona's position and so successful was its road trip to the bond houses, that it earned an "A" rating, which lowered its insurance costs, a savings of more than $1 million in the process.

So what's in it for the taxpayers of Deltona? By having a city-owned water plant, the future of Deltona's water service is more predictable, as are the water rates. Customers are assured of steady rates for five years, barring external forces such as a state mandate, or local issues such as finding new sources of water. City officials said they are confident the water plant will be a profit center for Deltona. This has the dual benefit of contributing profits to the city's operating budget along with generating funds that are required to maintain and improve the water plant to meet future needs.

Late last month, the city zeroed in on sealing the deal to purchase the water utility that serves more than 30,000 homes. It secured a bond loan for $81.7 million. The city this month will close the deal and officially take over operations of the plant.

The city commission has introduced ordinances establishing water and wastewater rates and outlining the service area, which parallels that of Florida Water Service Corp.

Obviously, water is an important issue countywide, a point not lost on Deltona officials. As a new player in the water business the purchase of the water plant enables Deltona to become a major partner in the new countywide Water Authority of Volusia (WAV). This purchase makes membership and involvement in WAV a top priority for Deltona. Mayor Masiarczyk summed it up by saying: "Deltona must work together with the other cities to assure a reliable flow of water to residents of Volusia County in the future, and we are committed to doing so."