Tom Ville, a professional engineer with Infrastructure Engineering Group, told the Dade City Commission that the city’s existing wastewater treatment plant has effectively been reserved through utility service agreements executed through 2023 and that only roughly 10,000 gallons per day of capacity remain — enough for about 40–45 single‑family homes.

Ville said the city’s consultant recommends designing the first phase of the new wastewater treatment plant for 3.2 million gallons per day (MGD). That phase would accommodate known development inquiries and would not need expansion until about 2056 under a 5% annual growth scenario. He told commissioners that ultimate build‑out, including possible septic conversions, would be about 4.8 MGD.

City staff told the commission they want direction on two policy questions: whether the remaining ~10,000 gpd should be reserved only for single‑lot infill (property owners who already own platted lots and want to build a house) or made available to small multifamily or affordable housing projects, and whether the city should allow contingent utility service agreements for developments inside Dade City only or for properties outside city limits but inside the city’s wastewater service area.

Why this matters: the city faces a near‑term funding and capacity choice. Ville said three funding sources will pay for the new plant and demolition of the old plant: developer impact fees, state and federal grants, and city‑issued loans or bonds. Development fees collected before construction reduce the amount the city must finance and therefore reduce pressure on wastewater rates. Ville said the city has about 16 proposed development inquiries within the service area without executed utility service agreements, representing a little more than 7,000 residential units that cannot be served until the new plant is built.

Key technical details and timeline
- Existing plant design capacity: 1,500,000 gallons per day; current average daily flow reported in discussion: about 657,000 gpd.
- Unreserved capacity reported in October 2023: approximately 10,000 gpd (about 40–45 homes).
- Recommended Phase 1 new plant capacity: 3,200,000 gpd.
- Estimated time to exceed Phase 1 at 5% annual growth: about 31 years (around 2056).
- Ultimate build‑out capacity estimate: about 4,800,000 gpd.
- State grant application (hurricane supplemental appropriation) decision expected by November (city note in presentation).

Commission discussion and staff follow‑ups
Commissioners asked for clarification about rates and fees for properties outside the city but within the interlocal service area; Ville said monthly wastewater rates are typically higher for properties outside city limits (commissioners referenced staff guidance that outside monthly rates can be about 25% higher) but that the development impact fee calculation follows rate‑consultant standards and may not legally allow a higher developer fee for out‑of‑city properties. Commissioners also asked whether developers already holding utility service agreements could reassign or buy capacity from other holders; Ville said modifications to existing utility service agreements would return to the commission for approval.

Next steps
City staff said they will return with an item asking the commission to adopt a policy direction on: (1) allowable uses for the remaining ~10,000 gpd in the current plant (single‑lot infill only versus small projects), and (2) whether contingent or contingent utility service agreements may be offered to projects outside the city limits but within the wastewater service area. The presentation emphasized two levers to lower rate impacts on residents: maximizing development fees on hand at construction and obtaining grant funding.

Ending
Commission consensus was to bring the item back as a future agenda item for formal direction. Tom Ville answered follow‑up technical questions at the end of the presentation; no formal commission vote was recorded on policy questions during this meeting.