FPUA seeks to support St. Lucie Village sewer project with connection-fee credits

Fort Pierce Utilities Authority staff asked the board April 1 to approve an interlocal agreement with the Town of St. Lucie Village and provide up to $1.1 million in capital improvement charge (CIC) credits to make sewer hookups less costly for village residents.

The proposal covers a low-pressure sewer project that staff said will serve about 382 parcels in multiple phases. The Indian River Lagoon water quality grant has already awarded $1.1 million toward the first of three phases, staff said. FPUA staff recommended applying an FPUA contribution in the form of CIC credits, not a direct cash payment, to be applied when individual parcels connect to the new system.

The proposed agreement would have the village construct the infrastructure and then transfer the new system to FPUA when each phase is completed. The credits would be applied at time of connection so that property owners pay less to tie in, staff said; they described the credits as an administrative offset rather than an upfront cash disbursement.

During board discussion, commissioners asked how many properties would be included and how costs would be allocated. Staff said the first construction phase includes 37 properties and that the overall three-phase project will serve about 382 parcels. Staff gave a figure of $1,166,805 as the construction cost associated with the first phase (presented during the discussion) and said the village received an Indian River Lagoon grant that covers the first phase’s construction cost; the FPUA contribution would be limited to CIC credits and would not fund construction directly.

Board members also asked whether homeowners would be required to abandon existing septic systems. Staff replied that septic systems would be abandoned in place and that health department rules would require connection when septic systems fail if sewer service is available within the department’s distance threshold. Staff said connecting to the new system is often less expensive than replacing a failed drain field.

Staff clarified several points about the mechanics of the CIC credit: there is no upfront FPUA cash transfer; instead the authority will record credits and apply them to customers’ connection fees as parcels connect. The board discussed changing the staff recommendation language to use the phrase “waive capital improvement charges” for future agenda clarity.

Why it matters: Extending sewer service can reduce pollution to the Indian River Lagoon and add wastewater customers to FPUA’s system. The project’s phased timeline depends on St. Lucie Village securing additional grant funding for future phases; only the first phase has a construction timeline (about six months) and an established grant.

The board did not take a final recorded vote on this item in this article; formal approvals for agenda items and resolutions are listed in the meeting’s votes-at-a-glance record.