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Authority updates SWSEP cost to $380M and projects rate impacts reaching roughly $2.59/1,000 gallons by 2035
Summary
Staff presented an updated Surface Water System Expansion Project cost estimate of $380 million and recommended mitigation strategies (staggered bond issuances, phased capitalized interest); county‑level rate impacts vary, with Charlotte County projected at about $1.88/1,000 gallons in 2033 based on its allocation.
Authority staff on Dec. 3 updated the surface water system expansion project funding outlook and projected customer rate impacts under revised cost estimates.
Anne Lee, presenting the program and rates overview, said the total funding estimate for SWSEP increased from $350 million to $380 million — an 8.5% change driven by updated project costs. To mitigate rate impacts, staff proposed staggering bond issuances in 2026 and 2027, leveraging an existing line of credit, and employing phased capitalized interest, strategies intended to smooth near‑term rate pressure.
Lee said those measures, combined with expectations for a declining interest‑rate environment, reduce the projected immediate impact and push aggregate rate impacts to materialize around 2028 and ramp to roughly $2.59 per 1,000 gallons by 2035 under current assumptions. "In aggregate, the rate impacts will be seen in about 2028 and slowly ramp up to about 2035 when it levels out at roughly $2.59 per thousand gallons," Lee said.
County‑level projections in staff slides included: Sarasota County (roughly $3.81/1,000 gallons in 2033 based on a 27.06 MGD allocation), Charlotte County (~$1.88/1,000 gallons in 2033 based on a 19.1 MGD allocation), DeSoto County (~$4.06/1,000 gallons in 2033 based on a 1.675 MGD allocation), and Northport (~$3.37/1,000 gallons in 2033 based on a 4.865 MGD allocation). Lee said staff will refine these projections as contractor draw schedules and final financing timing are confirmed.
The presentation was informational; there was no separate vote on the financing update, though staff described planned next steps to work on bond documentation and ratings in spring and return to the board for approval of bond documents in early summer 2026.
