Hillsborough County greenlights $586m Garney contract bump, $700m bond issue for One Water Campus
Hillsborough County Water Resource Service, Florida · Meeting date: September 2, 2026 · Published: September 4, 2026
The Florida utility is ramping up construction on its South Wastewater Conveyance and Treatment Project, targeting an initial 8 MGD capacity by 2028, while leveraging a newly secured AAA bond rating to lower borrowing costs.
Key points
- Commissioners approved a $586 million modification to Garney Companies' progressive design-build agreement, bringing the total contract value to $1.07 billion.
- The board authorized up to $700 million in utility revenue bonds to finance One Water Campus capital improvements and refinance existing debt.
- A $7.2 million contract amendment was awarded to Jacobs Engineering Group to complete 100% design and permitting for the South County Drinking Water Facility.
- The county's water bonds recently achieved a AAA rating from Standard & Poor's, meaning the utility now holds the top rating from all three major credit agencies.
Full report
Hillsborough County, Florida, has taken a massive step forward in its One Water Campus program, approving a combined package of construction contracts, design amendments, and bond authorizations to support the region's growing water and wastewater needs. At a September 2, 2026, meeting, the Board of County Commissioners unanimously approved a $586 million modification to its progressive design-build agreement with Garney Companies for the One Water South Wastewater Conveyance and Treatment Project.
The fifth modification to the Garney contract authorizes Guaranteed Maximum Price 4 (GMP-4), covering facility construction, long-lead equipment procurement, and additional pipeline work. The amendment increases the total contract value from approximately $491 million to $1.07 billion. Public Utilities representative George Cassidy noted during the meeting that the initial phase of the Advanced Wastewater Treatment Facility remains on track for completion in 2028, which will bring 8 million gallons per day (MGD) of capacity online. To support immediate project needs, the board also approved an $82 million budget amendment drawing from the county's 2026 Interim Financing Fund.
To finance the sweeping One Water Campus capital improvements, commissioners authorized the issuance of up to $700 million in utility revenue bonds. The package includes Series 2026A bonds for new construction and Series 2026B bonds to refund outstanding 2016 debt. Kevin Bricki of the Management and Budget department highlighted that the county's water bonds were recently upgraded to a AAA rating by Standard & Poor's. The utility now holds top-tier AAA ratings from all three major credit agencies, positioning the county for lower borrowing costs on the upcoming debt issuance. The refunding portion of the transaction is projected to generate approximately $650,000 in annual net present value savings.
In a related move, the board approved a $7.2 million contract modification with Jacobs Engineering Group for the South County Drinking Water Facility. The amendment brings the total professional services agreement to $9.9 million and covers Phase B services, which will advance the facility's detailed design to 100% and secure necessary permits.
County officials noted that both the Garney and Jacobs contracts are currently exceeding or maintaining their Disadvantaged Minority/Disadvantaged Women Business Enterprise participation goals, with Garney achieving nearly 24% participation against a 14% target.
This summary was generated by AI based on the source document and may contain errors.
Source: BOCC Regular, Hillsborough County Water Resource Service