2023-01-26 II. 3. Mandatory Connection - Funding x
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e. Okeechobee County
1' Board of County Commissioners
%��' 304 NW 2nd Street Department:Administration
• Okeechobee, FL 34972 Category:General Business
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4 Prepared By: Deborah Manzo
SCHEDULED Initiator: Deborah Manzo
ACTION ITEM (ID# 9147)
SUBJECT: DISCUSSION: MANDATORY CONNECTION TO WATER AND SEWER
UTILITIES FUNDING CONNECTIONS
MEETING: Workshop January 26, 2023
FINANCIAL IMPACT:
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REQUESTED ACTION:
That the Board of County Commissioners, City Council Members, and Okeechobee Utility Board
discuss and review funding connections for water and sewer projects.
BACKGROUND:
Okeechobee Utility Authority staff will provide further background information on OUA projects.
(see attached project costs outline from OUA on new projects)
Funding Options:
1. Okeechobee County: SHIP funding may be utilized under the Owner Occupied Rehabilitation
Program for eligible applicants to connect to water and sewer systems. This program requires
homeowners to apply for the program and to also carry insurance. The SHIP Program serves
very-low, low, and moderate income households.
2. Eligible Grants: Opportunities for grant funding through Florida Department of Environmental
Protection (FDEP) Wastewater Grant Program; and FDEP Nonpoint Source Funds; and/or
seeking availability for Community Development Block Grant (CDBG) opportunities similar to
the Whispering Pines wastewater project.
3. Special Assessments: City and County may have opportunities through the special
assessment process within their jurisdictions.
4. OUA Payment Plans for new service:
Term of Payment Plan 5yrs 10yrs
Interest Rate 1.0% 1.5%
Minimum down payment needed 25% (Applicable to all plans)
Minimum monthly payment added to monthly utility bill $40.00 (Applicable to all plans)
All balances will be due on sale or transfer of property (Applicable to all plans)
Funding Discussion:
1. Priority of projects.
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Action Item (ID #9147) Meeting of January 26, 2023
2. How will the delta of the costs be obtained?
3. Consider implementing a higher fee for those residents who have not hooked up to sewer
where readily available.
ATTACHMENTS:
• OUA Project Cost FY 23 (PDF)
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SRF SRF(Proposed) USDA USDA(Proposed)
Estimated OUA Federal SFWMD Loan Loan FDEP
Project Cost Budgeted Grant Grant Loan Forgiveness Loan Forgiveness Loan Grant Loan Grant Appropriation
Southwest Service Area
Project 1-Pumping $6,320,980 ($6.320.980) $0
Project 2-Collection $16,232,273 ($7,508.000) ($883,000) ($3.842 941) $3,998,332
Project 3-Okee-Tantie $8,336,079 ($8.336.079) $0
$18,500,000
Pine Ridge Park Project
Water $626,907 (S1.150.529) ($523.622)
Wastewater $3,803,968 ($2.473.400) $1,330,568
Misc Projects
$8,6627821 (81-00,000) (51..861,048) ($457.796) $1,243,977
SW 5th Avenue Wastewater $2,080,000 $2,080,000
Collection System
Treasure Island Septic to Sewer $30,400,000 $4,879,420
Project
FDEP Grant Portal Requests Proposed Additional SRF/USDA Loan/Grant Opportunities
Treasure Island Septic to Sewer Infrastructure,requested amount$3,500,000 Southwest Wastewater Service Area USDA 2 requested amount$4,000,000,estimated annual debt
Pine Ridge Park Septic to Sewer,requested amount$1,500,000 service at$135,000 USDA Terms:40 years at 1.375%
SWSA Septic to Sewer Project, requested amount$3,500,000
Orange Loop Gravity Sewer Project,requested amount$250,000 Pine Ridge Park WW SRF request for$1,500,000,estimated annual debt service at$115,000
Southwest 5th Avenue Septic to Sewer Project,requested amount$2,500,000 SRF Terms: 15 years at 1.64%
Connecting OSTDS to Central Sewer Project, requested amount$2,500,000
AMI SRF request for$1,500,000,estimated annual debt service at$115,000
AMI SRF debt$1,861,048,estimated annual debt service at$145,000 SRF Terms: 15 years at 1.64%
SRF Terms: 15 years at 1.64%
SW 5th Avenue WW SRF request for$2,500,000,estimated annual debt service at$150,000
SWSA USDA 1 requested amount$7,508,000,estimated annual debt service SRF Terms:20 years at 1.64%
at$255,000 USDA Terms:38 years at 1.375%
2025 2025 2025 2025 2026 2026 2026 2026 2027 2027 2027 2027 2028 2028 2028 2028
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
SUMMARY
Annual SRF Debt Service Payments $0.00 $0.00 ($290,000.00) $0.00 $0.00 $0.00 ($655,000.00) $0.00 $0.00 $0.00 ($655,000.00) $0.00 $0.00 $0.00 ($655,000.00)
Connections(3,643) 75 205 355 605 630 738 530 250 250 0 0 0 0
Connection Payments $105,900.00 $289,460.00 $501,260.00 $854,260.00 $889,560.00 $1,042,056.00 $748,360.00 $353,000.00 $353,000.00
WW Base Charge(Debt) $1,800.00 $6,720.00 $15,240.00 $29,760.00 $44,880.00 $62,592.00 $75,312.00 $81,312.00 $87,312.00 $87,312.00 $87,312.00 $87,312.00 $87,312.00
Annual Net(Debt) (182,300) 1,976,140 2,147,944 (305,752)
(FY23)
Rates
Connection to Vacuum Pit(4") $574.00 Project 2 Project 3 PR Park Treasure Existing Debt
Island Sub-Total Total Debt
Wastewater Capital Connection Charge $838.00 2025 ($254.100) $71,800 $0 $0 ($182,300) ($2,452,368) ($2,634,668)
$1,412.00 2026 $296,400 $663,000 ($49,660) $1,066,400 $1,976,140 ($2.381,891) ($2,381,891) Did not apply the projected surplus funds
Monthly WW Base Charge(Debt Portion Only) $8.00 2027 ($136,100) $248,564 ($20,920) $2,056,400 $2,147,944 ($2,390,116) ($2,390,116) Did not apply the projected surplus funds
2028 ($242,000) $60,768 ($104.920) ($19 600) ($305,752) ($2.412.419) ($2,718.171)
Assumptions 2029 ($242,000) $60,768 ($104.920) ($19.600) ($305.752) ($2,072,316) ($2,378.068)
Project completion dates are estimates 2030 ($242.000) $60,768 ($104.920) ($19,600) ($305,752) ($1,741,445) ($2,047,197)
Annual Debt Service amount and dates are assumed 2031 ($242.000) $60,768 ($104.920) ($19,600) ($305.752) $0 ($305.752)
OUA Payment Rate is fixed at FY23 level
While connections are required,when,if and timing are assumed
Construction Costs are estimated until bid
Does not include costs to connect house to R/W
Annual Net is the summation of all four quarters(debt service
payments,connection payments and WW base charge payments)