Hillsborough County balks at private water system takeover, citing costly precedent

Hillsborough County balks at private water system takeover, citing costly precedentCommissioners have opted to explore loan options rather than directly acquire a distressed 21-home private water system, avoiding a move that could expose the county to liabilities from hundreds of other aging HOA-managed utilities.

Sunset Manor residents face an estimated $150,000 in repairs for a 40-year-old deep well system, equating to roughly $7,200 per home.

County policy prohibits the Water Resources Department from absorbing rural systems that fail to meet technical standards unless residents fund the necessary upgrades.

Connecting the subdivision to a nearby county water main under construction would still cost residents approximately $6,000 each in impact and connection fees.

The board approved a motion to assist the community in applying for State Revolving Fund loans rather than initiating a direct county buyout.

In separate business, the board appropriated $95 million in disaster recovery funds, including $30 million for a low-pressure sewer system conversion.

Hillsborough County, Florida, is navigating the complex financial and policy implications of distressed private water infrastructure, as commissioners weigh how to assist a rural subdivision facing steep utility repair costs without setting a costly precedent. During a May 6 meeting, residents of the 21-home Sunset Manor subdivision in Lutz petitioned the Board of County Commissioners to take over their privately managed water system. The 40-year-old deep well system requires an estimated $150,000 in repairs to maintain compliance and fire flow requirements—a financial burden of approximately $7,200 per household. Sunset Manor HOA President Colleen Cruck told the board that the community lacks adequate reserve funds and cannot secure typical public water grants, which are generally restricted to local governments. However, absorbing the system presents significant municipal hurdles. Kevin Moran of Hillsborough County Environmental Services noted that existing ordinances prohibit the Water Resources Department from taking over rural systems that do not meet county technical standards. "The county receives a number of requests to take over private systems throughout the years," Moran said, adding that residents are typically required to pay to bring the infrastructure up to code, alongside impact and meter set fees. While the county is currently constructing a water main down Sunset Lane near the subdivision, granting an exception to connect the rural homes would still leave residents with an estimated $6,000 per home in connection and impact fees. Furthermore, staff determined the area does not qualify for state or federal grants designated for distressed communities, leaving a State Revolving Fund loan as the most viable financial lifeline. Commissioners expressed strong reservations about the broader liabilities of a direct takeover. Chair Ken Hagan noted that Hillsborough County is home to 680 small, privately owned drinking water systems, 190 of which are smaller than Sunset Manor. The county has never acquired an HOA-managed water system, and doing so could trigger a wave of similar requests. "I'm concerned... about the can of worms that this will potentially open," one commissioner noted during the debate, pointing to the risk of absorbing liabilities from aging HOA assets decades after they were originally permitted. Ultimately, the board unanimously approved a motion by Chair Hagan to conduct a community meeting with Sunset Manor residents to outline the full scope of costs, assist with State Revolving Fund loan applications, and authorize a future connection to the county system subject to all applicable fees, ensuring costs are not shifted onto existing ratepayers. In separate water infrastructure business, the board unanimously approved a budget amendment appropriating $95 million in Community Development Block Grant - Disaster Recovery (CDBG-DR) funds for Phase 3 infrastructure projects. The sweeping package includes $30 million for a low-pressure sewer system conversion, $23.8 million for culvert replacements, $11.9 million for drainage improvements, and $6.3 million for stormwater pump station resiliency.