Winter Haven lays out $335M five‑year water plan; seeks $24.7M in initial utility debt

City Manager and Winter Haven Water Director Gary Hubbard outlined the water department’s fiscal 2025–26 budget and a multi‑year capital program during a special city commission workshop, saying the package anticipates borrowing now and additional debt later to fund major treatment and production projects.

The City Manager said the figures “are not new information” and noted they were included in a budget presentation two weeks earlier and in the city’s tentative budget. Gary Hubbard, director of Winter Haven Water, told the commission staff is planning a phased borrowing strategy and timing the market to get the lowest cost: "We're trying to do is get the best interest rate situation for the city over time," he said.

The presentation laid out a $37.3 million capital ask for the coming fiscal year and projected roughly $335 million in utility expenditures over a five‑year period. The largest single item is a proposed Water Resource Facility (also described as the long‑term rehabilitation/expansion of Wastewater Treatment Plant 3) estimated at about $173 million.

Why it matters: the plan drives water and sewer service investments that city staff say are necessary for community safety, regulatory compliance and growth. Staff said the city’s fee schedule and a 2024 rate study were designed to produce revenue sufficient to cover planned debt service.

Major financial points and timing

- Proposed immediate debt in the FY 2025–26 budget: $24,700,000 (presented as anticipated debt proceeds). City staff said that number may be amended if the commission approves larger issues later in the fiscal year. - Planned near‑term bond window: staff forecast bringing a recommendation in late 2025 or early 2026 for a bond issuance likely in the $60–$80 million range to accelerate projects. - Longer‑range borrowing contemplated in the 2024 rate study: up to $258 million over time; staff said the city is not recommending borrowing that full amount at once. - WIFIA: staff said Winter Haven has approval to pursue a $171 million WIFIA loan; WIFIA financing is limited to 49% of eligible project costs and would be one component alongside state revolving funds, bonds and grants.

Rates, fees and revenues

Staff said water rates will rise Oct. 1 under the schedule adopted last year: water rates will increase 2.5% and wastewater (sewer) fees will increase 7.5% (year two of a five‑year schedule). Utility fund revenues are made up of multiple sources: water and sewer sales (~44%), connection fees (~10%), grants (estimated at 10% in the current projection but staff said that could be higher if grants are awarded), service charges, reimbursements (including from the Polk Regional Water Cooperative), and other fees.

Staff said connection fees were adjusted effective Jan. 1 and currently are the highest in Polk County; staff also told commissioners that permit activity has continued despite the higher fees (498 single‑family home permits issued January–July 2025, including 93 in July).

Capital program and major projects

- Pollard Road water production facility: well drilling is under way; construction is anticipated to begin in early 2026. The Pollard Road facility is described as an 8 million gallon per day (MGD) plant, about half of which will be fed by the Polk Regional Water Cooperative (PRWC) raw water line. - Cypress Wood water production facility: new production work and well drilling are planned; projected capacity about 1.5–2 MGD. - Water Resource Facility / Wastewater Treatment Plant 3: staff described consolidation/rehabilitation work and a target initial capacity of 12 MGD; the long‑term rehabilitation and expansion of Plant 3 is the single largest project in the five‑year plan (~$173 million). - Bradco Farms (also referred to as the “Sapphire Necklace”/wetland restoration and aquifer recharge site): staff reported the city acquired roughly 370 acres in December 2023 and expects the full project area could reach 450–500 acres. Recharge well drilling on the Bradco property is planned to begin November–December 2025 and wetland construction may start in summer 2026. - New utility administration and maintenance complex on Buckeye Loop Road: a roughly 50,000‑square‑foot campus with administration, maintenance buildings, storage and customer service relocation; staff estimated construction of buildings could take 12–16 months once started.

Other operational items

- Repair and replacement fund: the budget includes $2.4 million planned for repair and replacement work in FY 2025–26; staff noted an established repair/renewal fund intended to address aging infrastructure. - Automated meter infrastructure (AMI): city is about 60% complete on AMI and expects new tower installations to raise coverage to about 95%. - Meter replacement: the city has about 43,833 meters (about 40,500 residential); staff proposed replacing about 10,000 meters per year rather than all at once. - Workforce and positions: the utility services department has about 136 positions (132 full‑time, 4 part‑time); the FY 2025–26 budget would add a fiscal manager, two utility servicers and one additional customer service staff member, plus a part‑time electrician and two positions tied to the unidirectional flushing/valve exercise program. - Lead and copper replacement: staff said the city has found some lead/copper service material and is on track to meet EPA deadlines.

Permitting, grants and financing mix

Staff described a financing mix that could include WIFIA loans, state revolving fund (SRF) loans, traditional bonds and grant funding. Staff told the commission that the city applied this summer for hurricane‑relief funds (more than $100 million available statewide) and that a $20 million award from that program is a realistic expectation though the final amount remains uncertain. Staff said they have asked DEP for grant support and proposed targeting higher grant participation (staff mentioned a 40% target across five years, versus the 5% assumption used in the 2024 rate study).

Regulatory and permit notes

Staff said the city is preparing a water‑use permit application to the Southwest Florida Water Management District (SWFWMD) and plans to ask for a 50‑year permit term, citing long‑term infrastructure needs. The Pollard Road well drilling program is exploring the upper zone of the Lower Florida aquifer; staff said early drilling reached depths near 900–1,200 feet and that neighboring well drills (Davenport) have found water in the same zone.

What the commission did and what comes next

This meeting was a budget workshop and did not include formal commission votes on the items presented. Staff said the numbers shown were included in the tentative budget and that a final budget ordinance will come to the commission for formal adoption in September. Staff also said they expect to return with a bond recommendation in late 2025 or early 2026 if the commission wishes to accelerate project schedules.

No formal motions or votes were recorded during the workshop. The presentation included requests for future actions (bond issuance approvals, permit submittals to SWFWMD, grant applications) that would require later formal commission consideration.