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Winter Springs hears utility-rate update; approves SRF loan application for east wastewater facility
Summary
Consultant Joe Williams told the Winter Springs City Commission the adopted five-year rate plan remains appropriate to fund most near-term needs, but long-term borrowings will create a debt-service "pinch point" around 2031; the commission approved submitting a $20 million SRF loan application for the East Wastewater facility.
Joe Williams of Raftelis told the Winter Springs City Commission on Nov. 10 that the city's five-year rate plan adopted in 2023 remains on track and is funding a multiyear capital program, including replacement wastewater plants.
Williams said the capital plan totals roughly $196 million and that earlier allocations set aside about $112 million for wastewater plants. He said construction cost pressures have increased the estimated wastewater-plant costs (a figure discussed in the meeting was about $158 million) and that the city is planning to rely on a combination of State Revolving Fund loans, grants and utility cash reserves to pay for the work.
"We're not seeing any changes needed to the five-year rate plan that you adopted," Williams said, while urging the commission to monitor the timing of loans and construction. He described a stair-step SRF borrowing pattern of roughly $20 million per project year and identified 2031 as a potential debt-service "pinch point" when several loan payments interact with existing debt service.
Williams said the utility has strong cash reserves (including a one-time ARPA transfer) and that the delay in plant construction provides near-term cash-flow flexibility. He estimated typical customer bill impacts beyond the adopted increases at about 5% per year in 2029'30 under the current forecast assumptions, adding that there is not an immediate request for new rate action.
Following the presentation, staff asked the commission to approve a resolution to submit a $20 million SRF loan application for the East Wastewater facility'the priority loan identified by the Florida Department of Environmental Protection. The commission approved the resolution by voice vote.
Mayor Kevin McCann and City Manager Kevin Sweet thanked staff and the consultant for the update. Staff said they will return with periodic updates as design and funding details solidify and as SRF award timing is confirmed.
What happens next: staff will submit the SRF loan application and continue to monitor project design, SRF availability and the multi-year forecast; the commission will receive updates before any additional rate actions are proposed.
