Tampa Bay Water clears $325m bond issue for major supply and PFAS projects

Tampa Bay Water clears $325m bond issue for major supply and PFAS projectsThe regional utility is taking on new debt to back a massive capital improvement program, driven by a half-billion-dollar pipeline, surface water treatment expansion, and initial PFAS design work.

The Board of Directors authorized up to $325 million in Series 2026A new money bonds.

Proceeds will partially fund 29 capital projects, including the $478.4 million South Hillsborough pipeline and $167 million surface water treatment plant expansion.

The funding package also covers $35 million in design work for upcoming PFAS treatment projects.

The utility's maximum annual debt service will increase by approximately $8.2 million, reaching $90.3 million.

Tampa Bay Water is moving forward with a major debt issuance to support its expanding capital improvement program. During its July 20, 2026 meeting, the utility's Board of Directors approved a supplemental bond resolution authorizing up to $325 million in Series 2026A revenue bonds. The debt proceeds will partially fund 29 different capital projects. Chief Financial Officer Christina Sackett and financial advisors from PFM detailed that the primary drivers of the new debt load include the $478.4 million South Hillsborough pipeline and the $167 million expansion of the region's surface water treatment plant. Additional funds will be directed to the $160 million South Hillsborough wellfield and $35 million for the design phase of upcoming PFAS treatment projects. To structure the new debt, the 2026A bonds will have an approximately 30-year term and utilize capitalized interest for the first year of payments. Alongside the new money, the utility authorized up to $100 million in Series 2026B bonds to refund a portion of its outstanding 2016A bonds. At current market rates, the refunding is expected to generate approximately $7.8 million in net present value savings. As a result of the new issuance, the agency's maximum annual debt service will increase by roughly $8.2 million, reaching $90.3 million in fiscal years 2029 through 2032. The financing arrives as the utility's core supply projects transition into active construction. Staff reported that the South Hillsborough pipeline—designed to deliver up to 65 million gallons per day—is currently 5% complete based on linear feet of pipe installed, with spending aligned at 20% of the budget. Meanwhile, the surface water treatment plant expansion, which will add a 12.5 million-gallon-per-day fifth treatment train, is 6% complete. Both projects are currently performing on schedule with no corrective actions required.