Fort Pierce Utilities Authority adopts FY2026 budget, approves bond plan and bridge financing

The Fort Pierce Utilities Authority board on Aug. 5 adopted Resolution UA 2025-12 to amend the fiscal year 2025 budget and approve the FY2026 budget, authorizing staff to pursue debt financing and interim liquidity to fund a $103 million capital program and a $246 million combined FY2026 operating and capital budget.

The budget marks a shift the board described as pairing ongoing rate revenue for routine needs with municipal bonds for long-lived infrastructure. Michelle Harris, the authority’s chief financial officer, said, “50% of our capital budget for ’26 is grant funded and 20% of the entire budget is grant funded,” and warned that grant reimbursements require cash flow planning.

Board members approved the resolution by roll call (all voting members present voted yes). After the vote, the board directed staff to present the approved FY2026 budget to the City Commission and to move forward with preparations for financing and a short-term line of credit.

Why it matters: The budget funds near-term operations and a five‑year capital improvement plan that prioritizes wastewater conveyance work, a new substation and storm-hardening upgrades to the Energy Services Center (ESE). The adopted plan relies on a mix of rate-funded capital (about 56% of the FY2026 budget), grant reimbursements (the board was told grants will reimburse roughly $47 million in FY2026 and roughly $34 million are expected in wastewater projects), and proposed bond proceeds to spread the cost of large projects across current and future ratepayers.

Key details from the board presentation

- Totals and allocation: The FY2026 combined budget adopted by the board is $246,000,000 (O&M ~$143,000,000; capital ~$103,000,000). The electric system is budgeted to generate about $81 million in gross revenue; wastewater about $60 million; water about $33 million; gas about $7.5 million; and communications and other sources the remainder.

- Grants and revenues: The presentation said grant revenue recognized in FY2024 included about $25…