Utilities staff and consultant urge rate increases to fund $325M in treatment projects; commissioners ask for public education

Boynton Beach’s utilities team and a rate consultant told commissioners June 30 that major, regulator‑driven upgrades to the city’s water‑treatment systems will require substantial capital funding and likely revenue increases.

Ryan Smith, the consultant retained for the city’s rate study, said staff and engineers evaluated alternatives and sized a combined capital estimate for planning, design and construction at roughly $325 million — a number that includes contingencies and that will be refined through design. “We’re assuming $325 million in total,” Smith said, noting the estimate includes planning for both of the city’s treatment facilities. He said the largest near‑term cost driver is regulatory requirements for emerging contaminants.

Punam Kalut, utilities director, cited rising operating costs for chemicals, power and contracted services and said recent procurement and asset‑management efforts have reduced operating growth but cannot eliminate the capital need. Kalut told the commission the utilities team expects to seek debt to fund major projects and recommended maintaining strong reserves and a multi‑year plan to preserve bond‑market access.

How much rates could move: the consultant presented a financial forecast that contemplated staged revenue adjustments; staff described an illustrative cumulative revenue need in the high‑teens percentage range over the forecast horizon (the presentation cited approximately 17.4% as an example scenario to match planned debt service and reserve targets). The consultant said even after proposed increases Boynton Beach would remain below many peers on combined typical bills because other utilities are facing similar capital pressures.

What commissioners requested: multiple commissioners said any rate proposal must be paired with a robust public‑education and engagement program explaining regulatory drivers, conservation options and customer‑service improvements. Vice Mayor Turkin and others insisted that staff explain “the why” clearly before notices or billing changes are presented to residents.

Next steps: staff said they will refine the design and cost forecasts, continue to pursue grants and appropriations where possible, finalize a bond strategy and return to the commission with a public‑engagement plan and precise rate proposals ahead of the September public hearings.

Note on certainty: consultant estimates are preliminary and include contingencies; final project scope and financing depend on design decisions, grant success and any state/federal regulatory timelines.