NSBU Approves $88M Bond, Residents Face Rate Hikes | The Locally Times
New Smyrna Beach residents will see changes to their utility bills after NSBU approved an $88 million bond for upgrades and simultaneously passed resolutions to modify water, wastewater, and electric rates.
New Smyrna Beach residents face changes to their monthly utility bills after the Utilities Commission (NSBU) approved an $88 million bond for system upgrades and simultaneously passed resolutions to modify water, wastewater, and electric rates. The March 28, 2026, decision greenlights the issuance of Utilities System Revenue Bonds, Series 2026, to fund a 'Series 2026 Project' that includes debt service and issuance costs. While the bond signals a substantial investment in the city's essential services, the specific nature and scope of the planned upgrades remain undisclosed, leaving residents without a clear picture of what their increased rates will fund. ## Unpacking the $88 Million Bond and Future Plans The $88 million bond, formally approved by NSBU on March 28, 2026, through Resolution 2026-03, will finance a 'Series 2026 Project.' This project covers acquisition and construction costs, including reimbursements for past expenditures, establishes or replenishes a debt service reserve fund, and pays for various bond issuance expenses. This latest financial move expands upon Resolution No. 2020-02, adopted in March 2020, indicating a continued strategy for system investment. The resolution grants NSBU officers authority to finalize the bond sale's precise date and financial specifics, including appointing a paying agent and registrar, as detailed in official records. This significant bond issuance is part of NSBU's broader infrastructure strategy. This CIP outlines over a decade of future investments. NSBU's proposed budget estimate for the fiscal year ending September 30, 2026, also received approval at that meeting. However, both the CIP and the budget estimate still require ordinance approval from the New Smyrna Beach City Commission. Crucially, the available resolutions and meeting records do not itemize the specific projects or detailed infrastructure improvements the $88 million bond will finance. The public currently lacks a comprehensive understanding of which particular components of the multi-year CIP the Series 2026 Project will address, or a breakdown of costs for specific upgrades within the $88 million total. ## Rate Hikes: What We Don't Know Alongside the bond approval, NSBU adopted two resolutions on March 28, 2026, directly impacting residents' utility bills. Resolution 2026-01 modifies rates, charges, and fees for water, irrigation, wastewater, and reclaimed water services. Resolution 2026-02 specifically adjusts electric service rates. These concurrent rate modifications mean New Smyrna Beach residents will see changes across a range of utility services. However, the specific percentage increases, new rate structures, or exact dollar amounts of these adjustments are not detailed in the provided source material. The records do not connect these rate modifications directly to the funding of the Series 2026 Project, the debt service for the new bonds, or the broader Capital Improvement Plan. Without specific financial figures for these rate changes, residents lack precise information on the exact financial impact these approved modifications will have on their individual households or businesses. Full understanding requires further public disclosure from NSBU. ## Unanswered Questions and City Commission's Role The $88 million bond represents a significant financial commitment by NSBU, aimed at supporting the utility system's long-term needs and ensuring essential services. This investment, paired with the approved Capital Improvement Plan through 2035, signals extensive infrastructure development and modernization for the city's water, wastewater, and electricity services. The bond's scale suggests an effort to address existing challenges or prepare for future demands. However, the absence of detailed information on specific projects funded by the Series 2026 bonds means residents lack a clear understanding of the tangible improvements planned for their utility infrastructure. While the 'Series 2026 Project' is identified as the bond's recipient, its components are broadly described as covering project costs, a debt service reserve, and issuance expenses, without itemizing specific upgrades like new pipelines, treatment plant expansions, or electrical grid enhancements. This gap means the public cannot yet assess how the investment will translate into direct improvements or service reliability. Full implementation and public accountability require further steps. The Capital Improvement Plan for FY2026-2030 and FY2031-2035, along with the proposed budget estimate for the fiscal year ending September 30, 2026, await ordinance approval from the New Smyrna Beach City Commission. This makes the City Commission critical in the final adoption of these overarching financial and planning documents. The available records do not specify the timeline for this City Commission review and approval. Residents seeking to understand the precise nature of the utility upgrades, the specific impact on their bills, and the schedule for these changes must monitor future City Commission proceedings and subsequent NSBU disclosures closely. ## Your Questions, Still Unanswered **How much will my utility bill change?** The New Smyrna Beach Utilities Commission approved resolutions modifying rates, charges, and fees for water, irrigation, wastewater, reclaimed water, and electric services, but the specific percentage increases or dollar amounts of these adjustments are not detailed in the available records. **What specific projects will the $88 million bond fund?** The $88 million bond is designated for a 'Series 2026 Project,' which includes funding a debt service reserve fund and costs of issuance, but the specific utility upgrades or infrastructure improvements are not detailed in Resolution 2026-03. **When will the City Commission review these plans?** The Utilities Commission's Capital Improvement Plan and proposed budget estimate for fiscal year 2026 await approval by ordinance from the New Smyrna Beach City Commission, but the exact timeline for this review is not specified in the records.