FPUA board and City Commission sign off on FY2026 budget; $27M conveyance gap to be covered by 2026 debt issuance

Fort Pierce Utilities Authority leaders presented a FY2026 operating and capital plan to the city commission on Aug. 11 that relies on grants, targeted rate adjustments and a proposed 2026 bond issue to finance a new wastewater treatment plant, conveyance redirection and electric system upgrades.

Michelle Harris, FPUA chief financial officer, said the FY2026 package combines rate increases that match the Florida Public Service Commission inflationary index (2.23%) with a planned debt program and grant funding. The board approved an FY2026 FPUA budget at its prior meeting and the City Commission adopted the authority’s budget by resolution (25‑R‑58) on Aug. 11; the vote was recorded as unanimous by roll call.

Harris and Executive Director Javier Cisneros provided several project and funding highlights: - New wastewater treatment plant: total project cost described during the presentation at roughly $139 million; the plant construction is largely funded and the FPUA team expects commissioning and a ribbon cutting in December. - Conveyance system redirection (phase 1a and 1b): the consultants and staff estimated phase 1a at roughly $33 million and phase 1b at about $27 million; FPUA has obtained grant funding covering a substantial portion of the program (Michelle Harris cited $34.2 million and the presenters also referenced roughly $39 million in grant support in different parts of the presentation); the remaining conveyance gap is the approximate $27 million staff described as planned to be financed with a 2026 revenue bond issuance. - Electric system needs: four substations were described as operating near or above recommended loading thresholds; FPUA proposes a new substation and transformer upgrades so the system can support expected commercial growth.

Harris said FPUA is pursuing a combination of bond proceeds, grant reimbursements and a short‑term line of credit to bridge timing between project spending and final debt issuance. She said the authority expects to maintain roughly 90 days of cash by year‑end and described a risk‑hedging strategy for purchased energy (the DART program and FMPA gas stability work) to avoid month‑to‑month price spikes.

City Commission action: Commissioners voted to adopt the FPUA FY2026 budget (Resolution 25‑R‑58). The roll call vote on the resolution was recorded as yes from Commissioners Broderick, Gaines, Johnson and Mayor Hudson.

Why it matters: The FPUA plan funds multi‑year infrastructure with grants where available and a 2026 revenue bond package to spread costs across current and future ratepayers. Commissioners pressed for detail on the conveyance budget and electric capacity, and asked FPUA to coordinate timing with city capital plans and to provide periodic financial updates to the commission.

What’s next: FPUA plans a line‑of‑credit draw to cover near‑term work and intends to issue revenue bonds in 2026; consultants and staff will continue grant applications and coordinate a project timeline tied to construction, the new wastewater plant start and electric upgrades.