BY MARK J. CRAWFORD
Engineers for Starke have been developing funding strategies for major capital improvement projects, with particular focus at a recent meeting given to drinking water projects.
Justin de Mello, a vice president and professional engineer for Woodward and Curran, presented a Drinking Water Financial Improvement Plan for the commission to consider. The plan takes the capital improvement plan for the city’s water utility and overlays it with funding opportunities.
In an “exhaustive” list of agencies, the Florida Department of Environmental Protection had 11 different funding programs. USDA and legislative initiatives have also been successful for the city. Other agencies included Suwannee River Water Management District, Florida Rural Water Association, Florida Department of Economic Opportunity, U.S. Department of Commerce and the Florida Department of Emergency Management.
DeMello said the city can improve the appeal for funding by presenting projects from multiple angles, promising they will provide reliability and resiliency, address climate concerns, make storm water improvements, etc.
Woodward and Curran and Starke have been successful receiving nearly $19.8 for multiple utility projects, including upgrades for the sewer collection system, drinking water storage and treatment and downtown revitalization.
DeMello said they are putting in in requests for more than $100 million in additional funding, with most of that being for water, wastewater and storm water resiliency and redundancy. Multiple sources will be tapped for drinking water system improvements.
Revisiting the drinking water alternatives presented in July 2023, the commission opted for partial improvements to both water treatment plants; a new elevated storage tank, water main and distribution system upgrades; and upgrading to advanced metering.
With $4.5 million secured and 90% of the design completed, deMello said the city needs another $15.1 million for those projects, which can be conducted in phases.
Woodward and Curran had calculated a financial improvement plan prior to the most recent $2 million state award. It included options for issuing a bond or financing through FDEP’s SRF loan program. It also looked at combining programs. If the city could get a partial FDEP grant, for example, it could finance the rest through SRF. Impact fees and developer agreements were also part of the calculations.
The additional cost for customers for the various alternatives ranged from an additional $1.51 a month for two state funding programs with low annual repayments to more than $52 a month for a bond issue with the current high interest rate and an annual debt payment of more than $1.7 million.
“The intent of this is not to show you, hey, this is concrete, and this actually happened. The only thing concrete is the four and a half million that we’ve secured to date, right? The rest of it is still, hey, let’s roll up our sleeves together. Let’s continue the partnership. Let’s go out and find you grants, because your range of this project could be anywhere from $0 for existing customers all the way up to $52 for the existing customer, and it could fall anywhere in between,” deMello said. “I think very confidently that we can get to something very achievable here without going back to your rate payers and saying, ‘Hey, we have to borrow $17 million at 7% and it’s going to increase your water bill, just your water bill alone by $50.’”
There are a lot of water projects to undertake, both because of delayed maintenance and future growth, deMello said. The water utility needs the same commitment to the wastewater system is receiving. Woodward and Curran will help execute that strategy, pounding the pavement to leverage grant opportunities and alternative financing. An impact fee analysis is underway, and forging agreements with developers to pay their share is also being discussed.
City Manager Drew Mullins said a new metering system would also increase utility revenue before rates are even touched. In a previous town he managed, revenue jumped 15% after replacing 3,000 meters. DeMello said 15% more revenue can leverage a lot of borrowing potential.
