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Tequesta plans major water projects, cites SRF loans and $10 capital charge to fund work
Summary
Utilities Director Marjorie Craig said Tequesta plans several major water capital projects funded with a combination of SRF loans, reserves and a $10 annual capital charge estimated to raise about $845,000 annually.
Utilities Director Marjorie Craig told council the water utility is moving from planning to implementation and expects several large projects to proceed in the coming year, some funded with State Revolving Fund (SRF) loans. "We are expecting over $10,000,000 in the SRF funds," Craig said, and staff described a mix of pay-as-you-go and SRF-supported capital funding. (Marjorie Craig, Utilities Director)
Highlighted projects Craig and Manager Jeremy Allen discussed included the Beach Road Phase 2 water-main work (estimated about $5.9 million, partly offset by a developer agreement and SRF funding), membrane replacement for the reverse-osmosis (RO) system, filter-media replacement at the water treatment plant and SCADA upgrades. Manager Allen said earlier bidding is underway on some projects and that a loan agreement for SRF funding on the water treatment plant is in process with DEP.
Funding and the capital charge: Allen and Craig described the $10 annual capital charge (characterized in the presentation as a $10 per account capital repair/replacement charge) as contributing roughly $845,000 a year toward water capital needs. Craig said capital reserves and SRF loan proceeds will provide roughly $12 million in capital by the end of the next year when combined with the charge and other sources.
Why it matters: the water projects are large-ticket infrastructure items that affect long-term utility rates and service reliability. Council members asked for a five-year projection showing the recovery charge's revenue and capital-impact over time. "Do we have, like, a 5-year projection...on where that recovery charge will bring in in capital projects?" asked a council member; staff replied the charge yields about $845,000 per year and that the five-year schedule will be available as part of ongoing utility planning. (Council member)
Timing and regulatory constraints: staff said DEP and DOT timing has delayed some projects in the past; the Beach Road agreement and SRF loan paperwork are in progress. Craig also referenced vulnerability-assessment recommendations (generator elevation at Village Hall and service buildings, and swale reclamation) as priorities tied to utilities resilience.
Ending: Council asked staff to provide an updated five-year projection for the recovery charge and to refresh comparative water-rate information; staff said they will return with updated modeling at the July workshop.
