The City has been the recipient of several Florida Department of Environmental Protection (FDEP) State Revolving Fund (SRF) loans to help finance the construction of wastewater capital improvement projects. The first step to applying for loans under the program requires the submission of a facilities plan to FDEP. SRF loans offer attractive interest rates (typically less than 3% and 0% on the most recent loan) with no penalty for early prepayment. A facilities plan lays out capital needs and funding sources for the near future, typically a five (5) to ten (10) year period.
Four prior facilities plans have been submitted to FDEP - the first facilities plan required under the SRF Program was approved by City Council on June 21, 2004; the second plan was approved by City Council on April 26, 2010; the third plan was approved by City Council on December 12, 2016; and, the fourth facilities plan for major expansions at the Water Conserv I WRF was approved by City Council on January 27, 2020. With capital improvements planned at the three (3) major water reclamation facilities (WRFs) and to the lift station network, the City expects to seek SRF funding under the new facilities plan titled, Clean Water State Revolving Fund Facilities Plan, Volumes one (1) and two (2) (the 2021 Plan).
Submission of the 2021 Plan to FDEP for approval does not constitute a commitment to borrowing a certain amount of funds. However, FDEP approval of the plan makes the City eligible to later apply for funds for projects identified in the Plan, if needed. If funds are sought under the approved plan, all applications and loan agreements are brought to City Council for approval. The various projects under the 2021 Plan are estimated to have construction costs totaling about $117 million. Due to annual funding caps under the SRF program, some of the projects will only be partially funded by SRF loan proceeds.
The State requires the City to present the 2021 Plan at a public meeting and provide the opportunity for public comment. The duly advertised public meeting was held on January 7, 2021. Following the meeting, City Council is required to adopt a resolution in favor of the 2021 Plan and commit to dedicating a revenue source for the repayment of the SRF loan. Although the City may not apply for full funding of the projects listed in the 2021 Plan, the City’s Wastewater system fees and charges are projected to well exceed debt service coverage requirements on the planned SRF loan proceeds.
If funds are later sought under the 2021 Plan, applications and agreements will be brought before City Council with the fiscal impact identified. The City’s Water Reclamation System is projected to exceed any debt service coverage requirements under the SRF Program.