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Largo moves forward on wastewater project with $19.1 million SRF forgivable-loan application
Summary
On first reading, the commission approved Ordinance 2026‑21 authorizing a State Revolving Fund loan application that staff said could result in a $19.1 million forgivable loan to fund a non‑surface water effluent disposal wastewater project; compliance requirements include Davis‑Bacon and American iron and steel provisions.
The City Commission voted on May 5 to approve on first reading Ordinance 2026‑21, authorizing the city to apply for funds from the Florida Department of Environmental Protection State Revolving Fund (SRF) for a non‑surface water effluent disposal project.
Jerry Walozynski, the city’s Director of Engineering Services, said the SRF application has been updated to reflect residual FEMA appropriations that flow to the SRF program; staff said the combined funding could allow a forgivable loan of approximately $19,100,000 for the wastewater project. Walozynski characterized it as "the largest grant or loan, forgivable loan in the city's history" and said the funding could make the project effectively free if forgiveness is applied as disbursements are processed.
Walozynski advised the commission that federal compliance requirements—such as Davis‑Bacon prevailing‑wage rules and the American iron and steel requirement tied to the FEMA appropriation—must be met for forgiveness to apply. He explained the city will submit disbursement packages through the SRF process; staff said forgiveness would be applied to disbursement amounts as they are processed and could cascade to a FY2027 inflow-and‑infiltration lift-station project if residual funds remain.
The commission approved the ordinance on first reading and scheduled a second reading and public hearing for June 2, 2026.
