Vero Beach Utilities Commission backs rate study tied to $125 million bond plan

The Vero Beach Utilities Commission voted unanimously June 2 to recommend approval of a 2026 Utility Rate Study and the reinvestment plan presented by Rob Bolton, the city’s Water and Sewer Director. Bolton said the utility faces rising operating and construction costs tied to a major capital program and a new wastewater plant under construction.

Bolton told commissioners the utility serves about 13,900 water customers, 10,700 wastewater customers and about 100 reuse customers, and described system assets including two water treatment plants, one wastewater plant, roughly 290 miles of water mains and 2,862 manholes. He said the Capital Improvement Program lists about $217 million in projects for FY2026–FY2030, with the GMP projects account totaling $164 million; planned funding includes $125 million in bonds and $42.3 million in grants. Bond anticipation notes of $55 million will be refunded by the planned February 2027 revenue bond issuance.

"The rate adjustments are necessary based on the increased operations and maintenance and debt service," Bolton said, explaining the need for higher revenue to match projected debt and operating costs. He showed residential bill impacts at 4,000 gallons and compared Vero Beach’s proposed rates with nearby utilities, saying the proposed rates would move Vero Beach from the bottom to the top of the local comparison list.

Commissioner Larry Podwill asked whether a fund exists to cover decommissioning of the old power plant and whether hazardous materials were present; Bolton said he hoped the developer would cover decommissioning costs and that the City did not anticipate hazardous-material issues. Commissioner James Altieri asked whether operating-cost savings or periodic lump-sum debt payments on 30-year amortization schedules could reduce long-term costs; Bolton said he expected some savings on electric costs at the plant but was not familiar with a lump-sum amortization scenario in the current bond modeling.

Bolton also recommended the Commission review the General Fund treatment and consider recommending a change to how gross revenue minus debt service is calculated (citing the Raftelis study) so that the 6% of debt service is applied differently in future analyses.

Commissioner Bill Eggers moved that the Commission recommend approval of the Utility Rate Study and the reinvestment of the funds as described; Commissioner Larry Podwill seconded the motion, which passed unanimously. No members of the public spoke during the meeting. The special meeting adjourned at 10:05 a.m.