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Seminole officials say new wastewater plant funding leaves $782,118 gap; options include rate increases, sales tax
Summary
Council and staff approved contractor draws and an easement for the new wastewater treatment plant while city staff warned a funding gap of $782,118 under current financing. Officials discussed options including targeted sales-tax increases, sewer-rate increases and operational cuts.
The Seminole City Council and associated authorities approved contract draws and an easement related to construction of the city's new wastewater treatment plant while staff told the council the project will leave a $782,118 shortfall under the current financing plan.
City staff presented recent actions taken on the project and the financing picture. The Seminole Utilities Authority approved a draw of $844,714.27 from a U.S. Department award to pay subcontractors for Crosswind Heavy Contractors, and a separate USDA-related draw of $22,588.70 for work by Wall Engineering was also approved. The council and authorities also approved a 10-foot electrical-power easement needed to supply the new plant.
Why it matters: Officials said those approved draws keep construction moving, but staff warned the city's current funding package does not cover the anticipated debt service once construction is complete.
City Manager Steve Saxon told the council that the U.S. Department of Agriculture had agreed to a $46 million loan for the plant but that only $2 million of that amount was provided as grant. "We will be $782,118 short," Saxon said during his presentation, laying out the gap the city must address before payments begin in 2026.
Saxon described a range of options for closing the gap: staff reductions and deferrals of planned street, parks and equipment projects; increasing the sewer rate (examples presented included a $5 monthly increase or larger increments); or raising a dedicated local sales tax (presented scenario examples included a quarter-cent or an eighth-cent increase and projected revenue for each). Saxon said the council could combine measures rather than rely on a single solution.
Council members and staff discussed timing. Several officials said if the council intends to pursue a sales-tax ballot measure, they should move quickly to allow voter action and revenue to begin before payments are due. Staff also proposed holding public hearings and distributing outreach materials to explain the choices and impacts to residents.
What was approved at the meeting: the authority approved the contractor draws for work completed through mid-February 2025 and granted the needed electrical easement for the plant site. Those items passed on roll-call votes during the authority session.
Next steps: Staff recommended additional public outreach and preliminary public hearings to gather input before the council selects a financing strategy. Saxon said staff would prepare more precise rate and tax projections for council review and public distribution.
Ending: The plant is roughly midway through construction; the council must decide whether to use revenue measures, organizational cuts or a mix of both to cover the projected $782,118 annual gap when debt service begins.
