Hillsborough County approves $650 million utility revenue note for One Water Campus

Hillsborough County approves $650 million utility revenue note for One Water CampusThe Board of County Commissioners unanimously greenlit short-term financing to advance major utility capital improvements, driven by the massive One Water Campus project in the county's southern region.

The board approved the issuance of a Subordinate Utility Revenue Note, Series 2026, for up to $650 million.

Funds will provide interim financing for water and sewer capital projects, specifically targeting the One Water Campus.

The note involves a non-revolving credit agreement with Bank of America and will be repaid exclusively from water and wastewater system revenues.

The county's recommended FY 2027 capital budget allocates $2 billion to water, with debt service increases heavily driven by the One Water project.

The Hillsborough County Board of County Commissioners voted 7-0 on July 15, 2026, to approve the issuance of a short-term Subordinate Utility Revenue Note of up to $650 million. The financing package will fund various public utility capital improvements, with a specific focus on the One Water Campus project located in southern Hillsborough County. According to Kevin Brickie of the county's Management and Budget department, the interim financing involves a non-revolving credit agreement with Bank of America. The note will be serviced and repaid exclusively from the county's water and wastewater system revenues. The massive One Water Campus is the primary driving force behind the county's current utility financial structuring. During the presentation of the County Administrator's recommended FY 2027 budget later in the meeting, Brickie noted that the county's overall capital improvement program is increasing by $406 million, with approximately $304 million of that increase directly attributed to the One Water project. The total recommended capital budget for water stands at $2 billion, making it the largest segment of the county's overall capital plan. Furthermore, debt service and internal service transfers have risen by more than $440 million, an increase that staff explicitly linked to borrowing activities supporting the One Water program. Agenda documents detail that the entire $650 million note will be available to fund capital improvement project expenditures anticipated through the end of FY 2026. The county plans to reduce the not-to-exceed amount to $500 million by June 30, 2028, and further down to $350 million by December 31, 2028. Staff expect to refinance the note in FY 2027 or FY 2028 as part of one or more future long-term bond issues. For FY 2027, the debt service expense on the note is anticipated to be approximately $105.5 million, which includes a $100 million principal repayment associated with the future bond issuance.