City leaders are warning the Cumberland County Utilities Authority that its property tax-exempt status is in jeopardy, if it keeps pursuing an idea to surrender financial control to an investment firm in return for a lump cash sum.
The “monetization” concept surfaced, publicly, at a CCUA board meeting in June. The idea has torn apart the board, with some members cut out of initial talks with an interested equity firm.
There also is fierce pushback from authority customers, municipal governments, and workers. The major concern is that sewerage rates, already considered high, would increase with ruinous effect on rate payers.
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