March ballot measure to decide if Longboat pursues up to $33M loan

On Nov. 12, Longboat Key town commissioners voted unanimously to approve a referendum for the March 2025 ballot. 

The referendum will give town voters the opportunity to vote for or against the town borrowing money through the State Revolving Fund (SRF) Loan Program for up to $33 million. 

This loan will pay for the town's subaqueous force main replacement project. If the referendum passes, the town could start construction as soon as fall 2025. 

The town's utility system operates with 47 lift stations, the main one being on Gulf Bay Road which pumps water from Longboat Key to the mainland. 

In 2020, a leak occurred that forced the town to pursue the replacement project. The mainland portion of the force main was replaced in 2023, and now the town must replace the portion that is under Sarasota Bay. 

According to a town memo, the staff's high-end estimate for the project cost is around $33 million which includes final design, permitting, easement acquisition and construction. 

This is the maximum amount the referendum allows for the loan, but Assistant Town Manager Isaac Brownman said the town will try not to take that much if possible. 

“We are proposing a $33 million ask on the debt side for this loan,” Brownman said. “However if we don’t need to incur that much, we’re going to try to drive that down.” 

Loan payments will be made by town utility rates.

Commissioners voted in September to approve rate increases of 8% for fiscal years 2024 through 2026, plus pass-through rate increases from Manatee County. Rate increases of 7% for fiscal year 2027 and 3% for fiscal year 2028 were also in the new increase schedule. 

A second reading of the referendum ordinance will take place at the commission's Dec. 2 meeting. The referendum will then be on the ballot for the March 11, 2025 election.