Daytona Beach secures $124 million in forgivable SRF loans for storm hardening, advances potable reuse ban

Daytona Beach secures $124 million in forgivable SRF loans for storm hardening, advances potable reuse banThe city will utilize 100% principal forgiveness loans from the FDEP to upgrade three major treatment facilities, even as it considers a charter amendment to block aquifer injection of reclaimed wastewater.

The City Commission authorized a CWSRF loan application for up to $81.9 million to implement storm hardening and resiliency projects at the Bethune Point and Regional Water Reclamation Facilities.

A separate DWSRF loan for up to $42.5 million will fund storm hardening improvements at the Brennan Water Treatment Plant.

Both loans are sourced from the FDEP's Supplemental Appropriation for Hurricanes Helene and Milton and feature 100% principal forgiveness.

Commissioners introduced an ordinance to prohibit the use of reclaimed blackwater for aquifer injection or introduction into the potable water system.

A deputy utilities director warned that banning underground injection before a pending reuse study is completed could drive up future water rates.

The City of Daytona Beach has authorized applications for more than $124 million in fully forgivable state revolving fund (SRF) loans to fortify its water and wastewater infrastructure against extreme weather. The funding approvals, formalized in the March 4 meeting minutes adopted by the City Commission on April 1, coincide with the advancement of a proposed charter amendment that would ban the city from utilizing reclaimed wastewater for potable reuse. The infrastructure upgrades will be funded through the Florida Department of Environmental Protection (FDEP), drawing from the Supplemental Appropriation for Hurricanes Helene and Milton and Hawai'i Wildfires (SAHM) allocation. The commission approved a Clean Water SRF loan application for up to $81,965,000 to implement storm hardening and resiliency projects at the Bethune Point and Regional Water Reclamation Facilities. A separate Drinking Water SRF loan application was approved for up to $42,575,000 to fund similar storm hardening improvements at the Brennan Water Treatment Plant. Both loans feature 100% principal forgiveness, requiring no repayment to the state. Commissioner Monica Paris commended the Utility Department for securing the grants, a sentiment echoed by Mayor Derrick L. Henry. Meanwhile, the city is grappling with its long-term water supply strategy in response to Florida Senate Bill 64, which mandates the elimination of non-beneficial surface water discharges. The commission introduced an ordinance on first reading that would ask voters in the November 2026 general election to amend the City Charter, prohibiting the water utility from approving reclaimed blackwater for aquifer injection or direct introduction into the public potable water system. Deputy Utilities Director Eric Smith cautioned against the ban, noting that the city is currently evaluating 11 potential options for handling reclaimed water—including irrigation, wetland rehydration in Bennett Swamp, and underground injection wells—through a management study due in June 2026. Smith warned that prohibiting underground injection could eliminate cost-effective solutions and potentially drive up future water rates. The proposed ban drew strong support during public comment, with residents Rich Yost and Sandra Snodgrass speaking in opposition to potable reuse, which Snodgrass characterized as "chemically treated sewage." Another resident, Vernon Weatherholtz, suggested the city focus its reclaimed water efforts on irrigation and fire protection in new developments.