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City updates on $280M utility CIP, tranche timing and rate studies; staff flags inflation and project tradeoffs
Summary
Hallandale Beach staff outlined progress on utility revenue bonds and the five‑year capital improvement plan, reported $60M issued in tranche 1, proposed $71.5M for tranche 2, raised the total capital estimate to about $280M (up from $259M) and said inflation and project reprioritization drove changes.
City staff told the commission on June 4 that Hallandale Beach’s utility capital program has been revised upward because of inflation and project refinements, that tranche 1 of the utility revenue bonds has funded multiple water, sewer and stormwater projects, and that tranche 2 planning is under way.
Finance and utility staff said the original estimate for utility CIP projects was roughly $259 million; with inflationary pressures and refined scopes that total has risen to about $280 million. The city issued approximately $60 million in utility revenue bonds in December 2024 (tranche 1) and staff proposed tranche 2 projects totaling about $71.5 million, with a goal of issuing additional bonds by December 2025.
Speakers outlined the utility funding approach and prioritization (grants first, SRF loans second, reserves then utility bonds). Staff said they have applied for about $52 million in grants for utility projects and been awarded roughly $20.5 million to date. Staff described lessons learned from tranche 1 related to inflation and consultant assumptions and said those lessons were incorporated into tranche 2 planning.
The presentation also covered the city’s multi‑phase rate‑study work. Staff described a two‑phase rate study: phase 1 is complete; phase 2 is ongoing and more complex because recommended AWWA best practices can create large bill spikes for certain classes of customers. For stormwater, staff noted a remeasurement of impervious area for commercial properties; redefinition of the equivalent residential unit (ERU) could materially change bills for some customers, so the city postponed a planned stormwater billing change to FY 2027 to allow more time for evaluation.
Utilities staff said tranche‑2 projects are intended to support water, wastewater and stormwater work (about $72 million worth of projects shown on slides). Staff recommended adopting project budgets, continuing to pursue SRF loans and bond issuance, and completing the rate study so the city can calibrate customer rates to fund the program sustainably.
Ending: Staff said tranche 2 plan milestones include design awards and a December 2025 bond issuance target; the commission did not take a tranche‑approval vote at the workshop but will consider related items in subsequent meetings.
