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Fernandina Beach Eyes Stormwater Rate Hikes, New Debt to Fix Aging System
FERNANDINA BEACH - City officials are considering a combination of rate increases, new debt, and expanded staffing to address what consultants and city staff described as growing needs in the city’s stormwater system.
At an April 7 workshop, Utilities Director Andre Desilet told city commissioners the discussion builds on earlier work identifying system deficiencies and long-term needs.
“This is the next piece for… what the department needs to accomplish our goals, and how we discuss how we get there,” Desilet said.
Consultant Ryan Smith of Raftelis Water Analytics said the city’s system faces mounting financial and infrastructure pressures.
He also noted the system’s infrastructure is older than other peer utilities.
Much of the system dates back decades. The underlying report presented to city commissioners states, “Majority of System Installed in 1977,” with replacement costs now estimated at $52 million.
To address those needs, the city is proposing a roughly $10 million, five-year capital improvement plan focused on drainage upgrades, pipe rehabilitation, and flood mitigation projects.
“What we’ve assumed is… securing a private placement loan for $3.4 million in 2027… (and) in 2029… $2.5 million,” he said.
City staff emphasized the importance of maintaining financial stability while taking on that debt.
“We’ve targeted… debt service coverage equal to or greater than 130% per year,” Smith said.
“What we’ve arrived at is that we’re requesting an addition of three field personnel… (who) will operate our vacuum truck non-stop,” he said.
The goal is to extend the life of existing infrastructure and reduce costly replacements.
To fund operations and capital projects, the city is considering a new rate structure based on Equivalent Residential Units (ERUs), which ties fees more closely to impervious surface area.
“We’re recommending that each ERU be billed at $16.75,” Smith said, up from the current $14.36.
“We are recommending elimination of the private retention facility discounts,” Smith said.
Officials acknowledged the changes would have uneven impacts across customer classes.
“Our existing rate structure produces inequities amongst different customer classes,” the consultant’s report states.
“I’m somewhat concerned about the increase for what I think of as really… these small properties,” Commissioner Genece Minshew said.
“Square footage… doesn’t actually tell us a very accurate story,” Commissioner Joyce Tuten said.
“We can really see how… undercharged commercial has been,” Desilet said.
“Stormwater fees are all driven by ordinance… we’ll come back with an updated ordinance that reflects this new rate structure,” Desilet said.
Officials also plan to review exemptions in the current ordinance, which has not been updated since 2012.
While commissioners acknowledged the proposed increases, staff emphasized they are intended to stabilize the system for the near term.
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FBObserver0072
Come on Mike, this article is impossible to follow and wanders around without really explaining anything meaningful to us residents of Fernandina Beach. Overall we have a new unwanted paid parking program bringing in profits that you celebrate cautiously and now we face certain disaster without more tax money for our aging storm water system. Explain things so that normal people get an understanding of what exactly is on the table. What is an ERU and is that the only line item charge that will be increased?
Monday, April 13 Report this
DouglasM
That project on Ash has become our version of "The Big Dig". I guess every City needs one....
Monday, April 13 Report this
Mingnmilo
Perhaps the parking fees could also help offset part this expenditure? Does an "ERU" limit the use of the money to a particular project?
Monday, April 13 Report this
FunnyGirl4615
How is it that this information was not included in the scope of all of the other work that needs to be done? Shouldn't this have been brought up at the time of the paid parking debate as yet additional millions of dollars that need to be provided to keep the city stormwater system in good shape? Why do we only get part of the picture and what is the next shoe to drop?
Monday, April 13 Report this