North Florida Water Utility Authority seeks county support as new operations begin

Shannon, executive director of the North Florida Water Utility Authority, told the Columbia County Board of County Commissioners that the authority is proposing an interim operating budget and is requesting that Columbia County include $5,264,800 in its preliminary budget to help cover an anticipated revenue shortfall for fiscal year 2026.

The authority presented the budget as an interim plan while it begins operating seven water and sewer plants across Columbia and Suwannee counties. "I started on June 9. And then on July 2, 23 days later, I had to propose a budget," Shannon said, describing the work of assembling the proposal using 2024 expense and revenue data for the seven facilities.

The director said the proposed revenue total includes expected utility collections plus the intergovernmental contribution requested of each county and that the expense side includes operations and maintenance, administration and a $200,000 contingency. "I took those numbers and I said, alright. This is how much I'm going to propose to run the operations," Shannon said.

Why it matters: the authority plans to begin operation of local water and sewer plants on Oct. 1, and the county managers must know the budget numbers to include in forward-looking “floor” budgets that commissioners will consider later this summer. Commissioners were asked to instruct staff to place the request into the county manager’s preliminary budget submission; the board offered consensus to include the authority’s request in the proposed floor budget rather than adopt any appropriation tonight.

Board members and the director discussed how the two counties’ shares were calculated. Shannon said she compared 2024 expenses and revenues at each county’s facilities, measured the shortfall for each and then split the combined difference between the two counties, yielding the $5,264,800 figure per county. "I simply took… the difference of that and I split it in the middle," she said, adding the method was chosen because the two counties' gaps were nearly equal.

Commissioners and county staff also discussed a possible catastrophic contingency the authority has requested each county consider earmarking in its own budget in case of a large unexpected capital failure (for example, a failed lift-station pump). The authority said it built a $200,000 contingency into its operating request and suggested counties earmark additional catastrophic funds locally rather than transfer them to the authority until they are needed.

Public commenters raised questions about the authority’s documentation. Resident John Lochert (spelled in transcript as "Lochert") said the authority had "no business plan, no rate study, no experience, and no evaluation of assets" and questioned where the $1.7 million in the authority’s revenue projection comes from. Shannon and county staff responded that the revenue line reflects existing utility revenues and that more detailed interlocal and MOU language is being drafted for county review. County attorney Grady Williams and staff said the authority would step into operations on Oct. 1 under an interlocal arrangement while the parties work toward more permanent contractual terms.

What’s next: Commissioners directed staff by consensus to include the authority’s requested amount in the county manager’s floor budget for the September budget process. Commissioners and staff said they expect additional briefings and negotiated memoranda of understanding to be reviewed before any funds move or a final county budget is adopted.

Ending: Shannon told commissioners she expects to refine the budget after several months of operation and better data. "Work the budget, see how everything's working out," she said, adding that improved billing and operational performance could reduce future county requests.