State loan program is best option for town sewer project

The town of Longboat Key requires a new multimillion-dollar sewer line laid on the bottom of Sarasota Bay. Thanks to the efforts of our town’s leadership team, we have an outstanding opportunity to save significant taxpayer dollars on this large infrastructure project.

First, some background. Since sewer lines were installed on Longboat Key in the early 1970s, all our collected sewage has been pumped to the Manatee County treatment plant through a pressurized pipe located on the bottom of Sarasota Bay. Sewage is the No. 1 environmental concern for coastal and bay waters in Florida. Following a sewage leak in 2020, the town of Longboat Key entered into an agreement with Tallahassee to replace the old sewer line. The line replacement project has completed all planning and permitting hurdles and is ready to go, pending financing.

We have three options to pay for the project. We can finance it using standard 20- or 30-year revenue bonds issued by the town. Or we can utilize a third option, a low-interest inter-government loan from the state’s revolving clean water infrastructure program. The town staff have worked long and hard to qualify us for the infrastructure loan, which would be paid off in 20 years. It will save us $8.3 million versus 20-year bonds and save a whopping $20.9 million versus 30-year bonds. It will also minimize the impact on our credit rating, reducing additional costs for future bonded programs like beach renourishment.

Most states have these infrastructure loan programs. They are always in great demand, with far more projects wanting than approved. Financed by the interest payments, they are not gifts or grants, but true loans. Qualifying for them requires three factors: a genuine public need, a solid repayment plan and sound municipal finances. It is an indication of how well-managed Longboat Key is that we qualified for a large loan (less than $25 million) on our first try. It also emphasizes Tallahassee’s concerns about protecting the health of north Sarasota Bay.

Now that the town manager, commissioners and staff have done their part, we registered voters need to complete the program by voting YES on the town referendum in the upcoming General Election on Tuesday, March 11. Early voting will be available at Town Hall March 3 through March 8 from 8:30 a.m. to 4:30 p.m.

—Mark M Hullinger, Longboat Key

Commissioner Hullinger served as a utility commissioner in Washington State from 1993-2005. He has been a Longboat Key resident since 2005.