Riviera's dilemma: $115 million in bond money can't fund much-needed water treatment facility

RIVIERA BEACH — Riviera Beach moved closer toward issuing $115 million in bonds for various projects despite lingering worries about how the city will pay for a new water treatment facility.

The Riviera Beach City Council took the first of two required votes Wednesday, May 1, to move forward with a series of bond issuances that could raise $25 million for a new fire station, $35 million for a new police department headquarters and $55 million for parks and recreation projects. A second vote would be needed before the city could formally issue the bonds.

If Riviera Beach raises the full $115 million, it would cost city homeowners an estimated $292 per year for every $250,000 in assessed taxable property value, according to figures calculated by the city. Voters overwhelmingly approved a trio of bond ballot measures in March so city officials could raise the $115 million.

But in a sign of just how much the city's need for an ever-more-expensive water treatment facility has come to dominate financial discussions in Riviera Beach, Councilman Glen Spiritis asked the staff if the city was required to use all of the $115 million bonding capacity.

"Can we take part of those funds out of the bond?" Spiritis asked.

Steve Bullock, a public finance attorney who is a consultant for the city, told Spiritis the city could raise some or all the money authorized by voters. The city would have to use what money it does raise for the specific projects it told voters it would use the money to build.

Riviera Beach could not use money from any of the three ballot-approved bonds to pay for a replacement for its water treatment facility, which was built in 1958 and needs to be replaced. City Manager Jonathan Evans has said the city plans to pursue various forms of funding to pay for the new facility, which could cost at least $300 million.

Spiritis echoed concerns raised previously by Councilman Tradrick McCoy about the necessity and timing of spending $55 million on parks and recreation facilities.

"My concern is that I'm not so sure it's time to spend $55 million in parks money when we have a water plant that's going to need a substantial amount of money," Spiritis said. "We clearly know we need a firehouse. We clearly know we need a police station."

A separate bond issue to help pay for water treatment facility?

Spiritis said he wants the city to have the flexibility to not spend all of the $115 million and seek another bond issue that could be used for the water treatment facility.

The $115 million in bonds would be backed by property taxes. City officials are considering a separate bond issue to help pay for the water treatment facility that would be backed by revenue from water and sewer rates.

City residents are paying sharply higher water and sewer rates this year and next, an increase staff and council members said is necessary to help keep the old plant going and to lay the financial groundwork for its replacement.

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The safety and quality of the city's drinking water became a flashpoint in January, when the city's Utility Special District told council members that water in a well tested positive in June 2023 for E. coli, a fecal contaminant that could sicken people if consumed.

The district admitted that it did not immediately tell either the state Department of Health or residents about the positive test, as it was required to do by law. Despite the positive test, the district said the contaminant did not make it into the city's drinking water supply and that the drinking water remained safe.

Riviera Beach Mayor Ronnie Felder, however, launched an investigation into the positive test and the district's response to it after he said Palm Beach County water safety experts told him the contaminant was in two wells, not one, and that it did make it into the water system.

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As she has during previous meetings, Councilwoman Shirley Lanier expressed frustration with the lack of answers for why the district responded as it did and who, if anyone, should be held accountable. Felder, as he has in previous meetings, preached patience as his and the state investigations seek answers.

Meanwhile, residents continue to worry about the safety of the drinking water, putting urgency on the need for a new facility and raising concerns about large-scale expenditures on other projects.

Wayne Washington is a journalist covering West Palm Beach, Riviera Beach and race relations at The Palm Beach Post. You can reach him at wwashington@pbpost.com. Help support our work; subscribe today.

This article originally appeared on Palm Beach Post: Riviera Beach takes first step in issuing $115 million in bonds