Utility also serves Ocean Ridge, Briny Breezes
By Rich Pollack
Palm Beach County commissioners are waiting for a deep-dive look into Boynton Beach’s water utilities before moving forward on a possible purchase of the operation, a step that could potentially affect residents in three South County coastal communities.
The idea of Boynton Beach’s selling its utilities department to the county surfaced unexpectedly in October when City Manager Dan Dugger made the offer to county commissioners who appeared opposed to the city’s annexation of several communities west of its municipal boundaries.
The city, Dugger said, would be willing to drop its efforts to annex western communities if the county purchased the water utilities operation.
Those communities in the unincorporated area receive water from Boynton Beach Water Utilities, as do water customers in Ocean Ridge and Briny Breezes, with Gulf Stream to be added.
Following a preliminary report in December, county commissioners gave staff the green light to take a harder and more thorough look at Boynton Beach’s water treatment operation. It will review finances and the future needs of the two water plants the city operates, as well as infrastructure.
That due diligence will take at least a year, staff told the commission, and could take as long as two years should the two governments get to a point where they’re ready to negotiate a deal that makes sense for both.
“They’re looking at everything,” said County Commissioner Marci Woodward, whose district includes the coastal communities that could be impacted by the change.
During the presentation to commissioners, Chief Deputy County Administrator Todd Bonlarron said a preliminary look at the water operation showed an operating budget of about $72 million and a capital budget of about $36 million.
The utility, he said, has about $53 million in debt, which expires in 2035.
Bonlarron pointed out specifically that the utility plans a 15% rate increase for the current fiscal year and an 8% to 11% increase over the next four years.
As part of the presentation, Bonlarron pointed out that the Boynton Beach utility has a $467,808 capital improvement plan that includes upgrades to the facilities.
The utility, according to county staff, has about 125,000 customers and about 150 employees.
Of those customers, 11,425 are outside of the city, including 3,158 in Ocean Ridge, according to the city. Briny Breezes has a master meter, which includes all users in the mobile home community.
Gulf Stream — which is currently served by Delray Beach — signed a 25-year agreement with Boynton Beach in late 2024 and will pay $2 million to have a new pipe laid to connect with its water system. That may not happen until October 2027.
Should Palm Beach County buy Boynton Beach’s water utilities department, it would also take on responsibility for maintenance of the distribution system including pipes, city officials said.
In examining the costs of water to residents from Boynton Beach and the county, staff looked at how much a customer using 5,000 gallons pays on a monthly basis.
Customers outside of Boynton Beach pay about $82 a month while those in the city pay about $66 for 5,000 gallons, according to county numbers.
Palm Beach County Water Utilities customers pay an average of $67.52 for single-family homes and $57.48 for multifamily units for 5,000 gallons, according to the county presentation.
Woodward said county staff believes the county might be able to offer a lower rate than what some Boynton Beach customers are paying now.
The commissioner said she believes the decision on whether the deal goes through will likely come down to how much the county is willing to spend on the system and if the purchase makes sense from the county’s viewpoint.
Woodward said she believes the city has a quality water utility operation, but she also praised the county’s operation.
“We have a great water utility department,” she said. “It pays for itself.”
Bonlarron said staff will come back to the County Commission after the financial review in a few months for guidance on whether to continue with the due diligence.
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