Groveland workshop: utility fund rebuilds reserves as council weighs major wastewater projects

At a June 24 Groveland City Council workshop, staff and consultants told councilors the Utilities Enterprise Fund has strengthened markedly, with cash on hand rising to about $7.98 million as the city plans a suite of water and wastewater projects funded largely by state loans and grants.

The presentation by TJ Fish, the city’s director of Transportation & Public Works, and Rich Niles of Woodard & Curran outlined long-term planning done through the Utility Master Plan and a 2024 Raftelis rate study. April Allman, the city’s budget manager, said the utility fund exceeded the Charter-required 20 percent reserve for the first time after growing from roughly $407,000 in FY2023 to nearly $7,984,272 in May 2026, and she projected a FY2027 debt-service-coverage ratio of 1.54, above the Florida DEP SRF requirement of 1.15.

Why this matters: the council must balance holding liquidity against beginning principal repayment on State Revolving Fund loans and other financing while meeting ongoing capital needs for growth. Staff described a financing package that includes about $62.2 million in SRF loans (listed on slides) and approximately $66.6 million in grants, principal forgiveness and capacity payments for projects such as the Villa City drinking water project, Sampey Wastewater Treatment Plant improvements, reclaimed-water work at Sunshine, and other planning and well projects.

Councilors pressed staff on the city’s approach to deferred debt. Mayor Keith Keogh asked why some principal repayments had been postponed despite rising reserves; Mr. Fish replied that many SRF loans defer repayment until construction is completed and that prior years lacked sufficient revenue to both address backlogged maintenance and make accelerated debt payments. Mike Fitzgerald, a city financial consultant from Aclarian LLC, said retaining cash can be prudent because short-term investment earnings can exceed the low interest rates on many SRF loans and because liquidity supports near-term capital flexibility.

Council Member Michael Jaycox questioned why the proposed FY2027 budget showed a roughly $1.9 million positive variance rather than the higher revenue estimates in Raftelis’ study and why staff presented projections for FY2027 instead of focusing on FY2026 actuals. April Allman said the revenue projections are conservative and adjusted for current collection trends; staff agreed to review and clarify budget figures and debt-service timing at the council’s request.

Staff also discussed impact fees and interlocal arrangements. Mr. Fish said future growth-related infrastructure work — including wastewater treatment capacity — will require updated impact-fee studies and that a revised interlocal agreement with the City of Mascotte obligates Mascotte to contribute to reserved capacity and continue monthly wholesale wastewater payments to offset project costs. Staff said they will seek legal review to clarify statutory limits on applying impact-fee revenues to debt repayment.

Operational changes and project lists were presented in slides. The consultants and staff summarized completed projects (meter replacement, downtown water main replacement, force main extension), ongoing projects (Sunshine reclaimed pump-station improvements, Villa City WTP work), and a capital backlog and priority list that includes an estimated $28.95 million in high-priority needs plus additional projects such as an Emergency Operations Center and various SCADA, lift-station, and distribution improvements. Slides showed SRF loan entries totaling $62,169,833 and grant/forgiveness totals of about $66,603,480. Staff noted that an SAHFI grant originally tied to a proposed northern water reclamation facility was redirected by FDEP toward infiltration/inflow planning and I&I improvements after eligibility changes, leaving remaining funds for design and construction contingent on final approvals.

Vice Mayor Barbara Gaines asked for specific data on revenue gains attributable to the meter replacement program, justification for proposed staffing increases, and measurable financial benchmarks to ensure the utility’s long-term sustainability; staff committed to providing those details in follow-up materials.

The workshop also included a revised 2026 council meeting and budget calendar aligning deadlines with statutory TRIM timelines and scheduling a First Public Budget Hearing in early September 2026. No formal votes or motions were taken; Mayor Keith Keogh adjourned the workshop at 2:12 p.m.

What’s next: staff will return with clarified budget figures, debt-service timing, impact-fee study options and requested metrics on meter-replacement revenue and proposed staffing changes ahead of upcoming budget workshops and the statutorily required public budget hearings.