CIP Book FY 2023-27 - Final - Flipbook - Page 20
Capital Improvements Plan
Water and Wastewater Funds
Projects and equipment purchases in these funds are needed to ensure the proper functioning,
maintenance, and operations of the City’s Water and Wastewater distribution, collection, and
treatment systems. The two main components of the funding scenario are the Water and Wastewater
Renewal and Replacement (R&R) Fund and the Water and Wastewater Impact Fee funds. The R&R
fund is set up primarily to replace, restore, and rehabilitate existing infrastructure. The Impact
Fee funds are set up to provide a mechanism for the City to provide partial funding for new
infrastructure for the growth and expansion of the system. In addition to traditional user revenues
and impact fees, the budget has historically included: increased support due to a one-time 6% rate
increase in 2016, specifically for capital, revenue bonds, bank loan financing, and grant funding
from St. John’s Water Management District. This year was the final rate increase from a rate study
performed five years ago. This is done to ensure that our bondholders are secure in the knowledge
the City is responsible for making sure debt coverage is adhered to and assures any new potential
bondholders that the City does not take lightly the responsibility associated with running a proper
Water and Wastewater utility system. It is anticipated in the projections that another bond issue
will be necessary for the expansion of the main wastewater facility in FY 23-24. Starting FY 2021
by City Ordinance no 16-22 impact fee waiver for the industrial user has been adopted. Revenue
projections are based upon current FY 21-22 estimated revenues, an annual 0% increase in FY 2324, and in FY 25-27 3% increase. Following inflation, commodity and services cost increase, 5%
expenditure increase is applied for FY 23-24, and 3% for FY 25-27. In FY 2021, the City received a
Federal Grant, American Rescue Plan Act (ARPA) funds of $5,334,842. In FY 2022, City will receive
the second tranche of the same grant for $5,334,843. In FY 21-22 $1,358,316 of ARPA funds were
used to purchase a new Aerial fire truck for the Fire Department and $ 3,976,526 for FY 22-23 Water
& Wastewater department projects.
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