Nassau County moves to dissolve American Beach utility district and start sale to utility authority

Nassau County commissioners on Aug. 25 adopted an ordinance dissolving the American Beach Water and Sewer District, approved final finance transactions to close the project and voted to accept a public-interest finding that allows county-owned Amelia Island utility assets to be sold as part of a financing plan.

The boardvoted 5-0 on each of the three legislative items: the finance package to wrap up the American Beach project, the ordinance to repeal the district, and the resolution finding a sale to be in the public interest.

Why it matters County presentations said the system is older and needs substantial capital investment; staff and a utility finance consultant said selling the assets to the Florida Governmental Utility Authority (FGUA) would allow bond financing, draw on state revolving fund (SRF) loans and fund immediate repairs while preserving a county revenue share.

What was presented Bill Sundstrom, who described himself as having represented the county on water and wastewater utility matters for several years, told the board the county acquired the Nassau-Amelia utility system by eminent domain in February 2003. He said the system serves about 3,500 water customers and 3,100 wastewater customers and, in his assessment, requires roughly $25 million in capital improvements over the next five years. Sundstrom said problems identified after a 2019 line break included antiquated pipe (vitrified clay), infiltration, and an aging wastewater-plant reject pond with a possibly compromised liner.

Sundstrom described a financing approach: the county would sell the system to FGUA; FGUA would issue bonds to retire county indebtedness and fund capital improvements, supplemented by SRF loans and renewal-and-replacement accounts. Under the presented documents, the system would pay the county a 5% revenue share during the period of FGUA ownership, and the county would have an option to repurchase the system after the capital work is completed or at a five-year milestone, according to the presentation.

Board action and public comments The board approved finance package 2025-28, adopted ordinance 2025-030 dissolving the district, and passed resolution 2025-111 accepting a public-interest statement under Florida Statutes section 125.3401 (all by 5-0 roll-call votes).

Public speakers included members and officers of the American Beach community advisory board who thanked the board for earlier county funding that avoided a 20-year assessment for residents, and who asked for continued engagement and a permanent American Beach resident advisory group to help with remaining issues.

What remains Staff said engineering and accounting reviews of the financing and construction plan recommended the approach presented; if the sale and finance plan proceed as described, the immediate capital program is planned to be paid using bonds, SRF loans and existing renewal/replacement funds. The board directed staff to proceed with the adopted resolutions and financing steps.

Ending County staff will continue to pursue financing and the sale timeline; details on bond issuance, SRF loan applications and any repurchase terms will be brought forward in subsequent staff reports and agreements for future board consideration.