Nassau County staff: American Beach water-sewer project financially closed; county to seek dissolution Aug. 25

Nassau County staff reported Aug. 14 that the American Beach water and sewer conversion project is administratively closed with the state and that county leaders will ask the Board of County Commissioners to dissolve the special dependent district created for the work.

At the American Beach Water and Sewer Advisory Board’s final meeting, a county staff member said the county has received all loan reimbursements from the state and has obtained final amendments to State Revolving Fund (SRF) loan agreements that identify forgivable and non-forgivable portions of the financing. The county will use a previously pledged $1,850,000 to cover the non-forgivable portion and then issue the final payment to the state, the staff member said.

The project’s financial closeout matters to American Beach homeowners because the county’s payment will trigger reimbursements for property owners who prepaid non‑ad valorem assessments or had them included on tax bills, the staff member said. "We have received all of the loan reimbursements from the state," the county staff member told the board, and reimbursement work by county staff is "working on that right now." The staff member estimated that the reimbursement process would be conservative and completed within about 30 days.

Why it matters: The district was established under Florida law to fund and install water and sewer service for American Beach; dissolving it transfers ongoing utility responsibility and customer relationships to another provider and ends the special-district governance structure created solely for construction and closeout.

County staff said the construction portion of the conversion project is complete; outstanding pavement work on a few road segments remains the county’s responsibility. Staff reported the county expects paving to be finished by September and that a ribbon-cutting ceremony will follow once paving is complete.

The county also told the advisory board that at its Aug. 25 meeting the Board of County Commissioners will hold a public hearing to consider (1) accepting a public interest statement and (2) determining whether the sale of Nassau County utilities to the Florida Governmental Utility Authority (FGUA) is in the public interest. If the board approves the sale, FGUA would be the owner/operator and customers would begin receiving bills directly from FGUA rather than the county. County staff said routine customer contacts and the employees who have worked in the neighborhood are expected to remain the same, but automatic payments (ACH) will require customers to reestablish bank routing because county bank accounts cannot be transferred.

Board and staff comments at the meeting described outreach and connection assistance during construction. County staff and board members credited a ready grant and local outreach for helping reach homeowners; staff said roughly $875,000 of that grant paid for private connection work that increased customer hookups. Staff and board members also reviewed the advisory board’s history: the advisory board met 43 times during a 4-year, 4-month, 16-day span while the project advanced.

Votes at a glance

- Approve minutes, Oct. 13, 2022 — motion moved and seconded; outcome: approved. - Approve minutes, Dec. 8, 2022 — motion moved and seconded; outcome: approved. - Approve minutes, Dec. 12, 2024 — motion moved and seconded; outcome: approved. - Approve minutes, Jan. 9, 2025 — motion moved and seconded; outcome: approved. - Approve minutes, Feb. 13, 2025 — motion moved and seconded after correcting the year on the record; outcome: approved. - Approve minutes, April 10 (year not specified on record) — motion moved and seconded; outcome: approved.

Discussion vs. formal decisions

Discussion items: County staff described loan amendments, the county pledge, the reimbursement process for non‑ad valorem assessments, the pending paving work, the proposed FGUA sale, and the time line for reimbursements. Board members and local residents offered thanks and recollections of the long-term effort to secure water and sewer service.

Directions / next steps: County staff said it will finalize loan amendments and issue the county payment to the state; staff will work on property-owner reimbursements and expects to begin reimbursements within roughly 30 days. The Board of County Commissioners will consider the ordinance to dissolve the American Beach Water and Sewer District and the public-interest determination on the FGUA sale at its Aug. 25 meeting.

Formal actions in this meeting: The advisory board approved several sets of past meeting minutes (dates listed above). The advisory board did not vote to dissolve the district; county staff said dissolution will be considered by the Board of County Commissioners on Aug. 25.

Background and next steps

The American Beach Water and Sewer District was established as a special dependent district under Florida statutes to construct and maintain water and sewer infrastructure within defined boundaries. County staff said SRF loans covered a large portion of the project; amendments to those SRF loans identify which portions are forgivable and which are not. Once the county pays the non‑forgivable portion, staff will proceed with the administrative steps that trigger homeowner reimbursements for assessments paid by prepayment or via tax bills.

The county also described a planned operational transition: if the Board of County Commissioners approves the FGUA purchase on Aug. 25, customers will remain served by the same local staff and contractors but will be billed directly by FGUA. County staff warned that ACH payments will need to be reset with the new billing entity.

Residents who spoke at the meeting thanked the advisory board and county staff for completing the project and urged the county to continue community engagement during the transition. County staff said it will notify customers about any changes to billing and customer-service procedures and plans for the ribbon-cutting once paving is complete.

This advisory board meeting constituted the board's final scheduled meeting; county staff said the Board of County Commissioners will consider dissolving both the district and the advisory board on Aug. 25.