Atlantic Beach commission reviews public utilities budget, eyes reclaimed-water reuse

Atlantic Beach City Commission on Aug. 11 reviewed a public utilities budget that shows large reductions in capital spending and discussed using reclaimed water for the municipal golf course and steps to address groundwater infiltration in the wastewater system.

City Manager Bill Killingsworth told commissioners the proposed 2026 public utilities budget reduces capital outlay sharply compared with 2025. "What you're gonna see is quite a decline," he said, noting that water expenditures shown at $9.6 million in 2025 fall to about $4.6 million in 2026 and sewer figures drop from roughly $11.4 million to about $8.9 million. He attributed the change to many projects having been completed in the current year.

The decline in capital spending extends to plant projects: Killingsworth said capital outlay would fall from about $6.2 million to roughly $1.0 million in the proposed budget. Staff estimated replacing an existing water storage tank would be a roughly $1.5 million project when it is scheduled in the next two years.

Why it matters: the smaller capital budget shifts the city’s emphasis away from major plant projects in the short term and focuses attention on system-wide problems such as infiltration that can drive operating costs.

Infiltration and operational impacts

Public utilities staff, identified in the meeting as Troy, described significant infiltration of groundwater and stormwater into the collection system during rain events. Troy said the city has completed smoke-test reports for some areas but has not smoke-tested the entire system and recommended further testing and repairs. "When it's raining, the volume that we're treating in terms of wastewater goes up about a 100%," Killingsworth said, stressing the operational impact of the added flow.

Troy said staff will pursue additional investigations and repairs identified in prior reports. He described a likely approach of smoke testing and targeted fixes to reduce inflow and infiltration before deciding on longer-term infrastructure moves tied to compliance timelines.

Reuse system and golf-course plan

Commissioners also discussed the city’s reclaimed-water (reuse) system. Troy said the reuse build-out has cost more than originally expected and suggested reconsidering service rates because the city has not changed those charges in 13 years. "At this point, I would say yes ... we have spent a lot of money into it," he said when asked whether the system is costing more than anticipated.

Troy described a 3,000,000-gallon polishing pond at the wastewater plant that staff is proposing to use for the municipal golf course beginning in 2026, contingent on engineering work, metering and rechlorination plans. "We have a pond on-site at the wastewater plant ... 3,000,000 gallon pond," he said, and noted there are metering and rechlorination hurdles to solve before water can be delivered to the course.

Metering and interlocal hookup questions

Commissioners asked about an interlocal hookup that would allow neighboring Neptune Beach to use Atlantic Beach water for fire suppression. Commissioner Reed asked whether the meter could be located on Atlantic Beach’s side. Troy said the meter will probably be on Neptune Beach’s side in a vault but that Atlantic Beach staff would still be able to read it.

Infrastructure condition and next projects

A commissioner relayed an engineer’s concern that the pipe under Atlantic (Atlantic Beach) is in poor condition; Troy said it would need to be replaced, likely by boring underneath the roadway to avoid traffic disruption. Staff also flagged a future compliance milestone tied to 2032 that will require action on wastewater infrastructure well before that date.

Personnel and budget timing

Killingsworth said personnel services increase about 11% in the proposed budget, driven by overtime and 401(k) match requirements; operating expenses and debt service are largely unchanged. Staff said the wastewater plant recently reached full staffing, which should reduce overtime moving forward. When asked about debt, staff indicated a noted debt would be paid off in October.

The city manager confirmed the overall budget is scheduled for approval at the second commission meeting in September and would be effective Oct. 1.

What comes next

Staff said they will pursue additional smoke testing and repairs to address infiltration, refine the reclaimed-water engineering and metering plans for golf-course reuse, and move forward on capital projects once the budget takes effect. The commission did not take formal votes during the workshop; the item will be considered as part of the regular budget approval schedule.