Boynton Beach advances $4.17M watermain project and sewer expansion amid 17.5% utility rate hike proposal

Boynton Beach advances $4.17M watermain project and sewer expansion amid 17.5% utility rate hike proposalThe Florida city has approved a multimillion-dollar watermain replacement contract and secured land rights for a future wastewater lift station, while the city manager proposes offsetting a steep utility rate increase with a historic property tax rollback.

The City Commission approved a $4.17 million construction agreement with DBF Construction, LLC for the S.E. 36th Avenue Gulfstream Boulevard Watermain Improvements Project.

Commissioners approved a restrictive covenant for the Nichols Forest conservation area that explicitly includes a utility infrastructure carve-out to accommodate a future sewer lift station.

The future lift station will facilitate the transition of adjacent residential properties in unincorporated Palm Beach County from septic tanks to the municipal sewer system.

City Manager Daniel Dugger discussed a proposed 17.5% utility rate increase, suggesting a historic rollback of the city's property tax millage rate to offset the financial impact on ratepayers.

The City of Boynton Beach, Florida, is advancing key water and wastewater infrastructure initiatives, balancing multimillion-dollar capital projects with strategic land use and a proposed overhaul of its utility fee structure. During a July 7 meeting, the City Commission unanimously approved a construction agreement with DBF Construction, LLC for the S.E. 36th Avenue Gulfstream Boulevard Streetscape and Watermain Improvements Project. The competitively bid contract is valued at a base amount of $3,791,843, plus a 10% city contingency, bringing the total authorized project budget to $4.17 million. Simultaneously, the city is laying the groundwork for future wastewater system expansion. The Commission approved a Declaration of Restrictive Covenant for city-owned parcels in the Nichols Forest area, permanently designating the 15-acre site for conservation and natural habitat preservation. However, at the behest of utility staff, the city included a specific legal carve-out to allow for the construction of future utility infrastructure on the protected land. According to city staff, the carve-out is strategically positioned to accommodate a future sewer lift station. The infrastructure will be necessary to transition adjacent neighborhoods—which currently rely on septic tanks in unincorporated Palm Beach County—onto the municipal sewer network. Staff noted that securing the footprint now ensures the lift station can be built closer to existing infrastructure, minimizing future environmental and community impacts when the septic-to-sewer conversion takes place. To support its utility operations and infrastructure needs, the city is also navigating a substantial adjustment to its utility rates. City Manager Daniel Dugger addressed a proposed 17.5% utility rate increase, acknowledging the "robust dialogue" the hike has generated among officials and residents. To mitigate the impact of the utility fee increase, Dugger formally proposed enacting the first property tax rollback rate in the city's history, which would reduce general property tax collections by approximately $3 million. "If we're going to do a fee increase, we need to roll back the property taxes," Dugger told the Commission, noting that the city has identified operational efficiencies to balance the budget under this new financial strategy. The Commission will hold dedicated budget meetings in mid-July to vote on the final utility rates and tax rollbacks.