City of Margate Wastewater plant. {Google}
Margate not only needs upgrades for its wastewater treatment program, they need millions to pay for it.
During the April 3 commission meeting, City Manager Cale Curtis said they are working on a $120 million revenue bond issue that will be issued in three phases.
According to Curtis, the bonds would primarily fund significant improvements and upgrades within the water and wastewater utility systems. These projects will address aging infrastructure, improve the overall efficiency and reliability of the water and wastewater systems, and ensure the city’s compliance with stringent regulatory requirements, providing Margate with a secure and sustainable future.
City wastewater total volumes fluctuate with weather conditions, averaging 7-8 million gallons on sunny days and approaching 10-million-gallon capacity during tropical storms or rainy periods. In addition to the plant’s capacity and aged infrastructure, the Department of Environmental Protection is tightening wastewater treatment regulations, and the city’s current technology needs to meet these new standards, primarily due to its antiquated design and wear and tear.
According to Curtis, Margate currently requires chemical treatment to compensate for mechanical treatment weaknesses, which is expensive.
The first bond issue planned for fiscal year 2024 will raise $60 million for upgrades to the West Wastewater Treatment Plant. The city needs to replace the current treatment system, a rotating biological contactor, with more advanced treatment technology to improve processing efficiency.
The city plans to upgrade and rehabilitate the headworks equipment and structure and expand the West Plant, increasing treatment capacity by an additional two million gallons per day. This expansion will elevate the plant’s total processing volume to 12 million gallons daily, ensuring reliable treatment during severe weather conditions. This will allow Margate to have one treatment plant and less operational cost, according to Curtis.
The city plans to issue a bond worth $25.3 million in 2026 to replace asbestos cement water mains in its distribution system.
The bond is expected to fund around $23.1 million worth of projects in the third bond issue for fiscal year 2030. Curtis mentioned that this bond will be further discussed later and will provide flexibility for additional projects to be determined.
The city is now taking these initiatives to address urgent infrastructure renewal and replacement needs, comply with regulatory requirements, and ensure the system’s financial and operational sustainability.
According to Curtis, the need for rate adjustments is driven by the need to fund these capital improvements, maintain appropriate debt service coverage ratios, provide annual funding for ongoing replacement needs, and ensure sufficient revenues for operational expenses and transfers to the General Fund. This strategic approach will secure the city’s financial future and ensure the continued provision of high-quality services.
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