The city council of Palm Coast, Florida unanimously approved a $330 million bond plan, financing dozens of capital improvement projects citywide. This bond issuance is all part of the city’s strategic plan to revitalize and expand utility infrastructure, ensuring safe, reliable water and wastewater services for residents.
In creating the utility infrastructure investment plan, the city council worked to develop a funding approach that prioritizes essential infrastructure improvements and maximizes the use of impact fees and non-rate revenues. The council also requested modifications to the 5-Year Capital Improvement Plan to eliminate a second bond. The revised borrowing amounts are about $283.4 million and $171.8 million for project costs. Additional closing costs will be determined upon finalizing the bond, and these prices will be incorporated into the total project funding.
The funding will support projects listed in the Palm Coast Capital Improvement Plan, which will receive approximately 57% from bonds, 23% from developers’ impact fees, 15% from residents’ utility bills, and 5% from grants and other loans. Currently, a feasibility study is underway to determine the ability to repay the loans and what the debt and coverage ratio is.
The plan includes projects that are considered critical investments in Palm Coast’s utility system. They include steps to ensure continued compliance with regulatory requirements and preparation for future growth. Some of the projects will tackle overcapacity issues in the current aging system. Upgrades to Wastewater Treatment Plant 1 will expand the facility from 6.83 million gallons per day to 10.83 million gallons per day at an estimated cost of $169 million.
A project is planned at Wastewater Treatment Plant #3 to expand the site by adding the additional wells needed to provide the water source. This will cost approximately $57 million, with about $31.4 million funded by bonds. Other investments include $40 million to expand wellfields and raw water supply and $30 million in improvements to the water distribution and sewer collection systems, including replacing and installing new Pretreatment Effluent Pumping Tanks.
Photo by Bl∡ke from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.
