Town to apply for loan for subaqueous project

Longboat Key is making moves in preparation to begin work on its subaqueous wastewater pipe replacement.

The latest step taken by the town was for the Town Commission to pass a resolution authorizing town staff to apply for a State Revolving Fund loan.

According to a memo from Town Manager Howard Tipton, the application is for $19,166,503. Half of that amount is in the form of a “principal forgiveness” loan, and the other half a 0% interest loan. The project is expected to cost about $30 million total.

“What you see here before you is the way that we pay for the subaqueous project,” said Town Manager Howard Tipton. “The State Revolving loan fund had some extra money that was available and so half of the amount, nine and a half million dollars, is basically principal loan forgiveness and the other half is at a 0% loan. It doesn’t get much better than that.”

According to the Environmental Policy Innovation Center, a principal forgiveness loan includes “a mechanism that allows a portion of a loan to be waived, reducing the financial burden on recipients.”

The subaqueous wastewater pipe needs replacement after more than 50 years in service, a point accentuated when it ruptured in 2020, spilling millions of gallons of sewage before being patched.

Longboat voters overwhelmingly supported taking out a loan to pay for the project. The ballot referendum held March 2025 passed with a 95% approval rate.