A general obligation bond (G.O. bond) is a form of debt obligation that, when issued, provides local government with funds to finance large capital improvements, such as those currently proposed for undergrounding of utilities.

General Obligation Bonds are backed by the full faith and credit of the Town of Surfside, which means that the Town is obligated to pay back the bonds plus interest by pledging its ad valorem taxing power. As such, the Town uses a portion of its property tax revenues to repay the General Obligation Bonds in the form of annual principal and interest payments. General Obligation Bonds require approval by a majority of the voters voting in a Town-wide referendum.

The Town is proposing an up to $40 million Bond Program. The project cost is currently estimated at $37.2 million to underground utilities in town including residential connections, engineering/legal fees, common area restoration, and street lighting. The additional amount may be needed based on the actual construction bids when received.

The Town levies an operating millage rate that cannot exceed 10 mills by the State of Florida (The Town’s current operating millage is set at 4.200 mills) and can also have a voted debt service millage rate to cover debt service payments. The Town would set a new millage derived from property tax revenues specifically to repay debt incurred for bond-funded improvements. The proposed Bond Program would be funded by a Town property tax rate specifically for debt service.

Yes. The Town’s tax rate for debt service is a component of the Town’s overall tax rate. For each individual property owner, the tax increase is estimated to be between $73 to $156 per every $100,000 of a property’s taxable value based on the term of the debt.  The range is based on a bond term from 10 to 30 years.  The term or the length of time the debt will be repaid will be determined by the Commission at a later date.  This would equate to between a $2.3 million and $4.9 million annual debt payment depending on the term of the Bond Program.

The Town added $2.65 million to reserves in Fiscal Year 2022. The Town Commission could use all or part of this Reserve addition to help offset any millage rate increase specifically for debt service.  It could not be used to pay debt service; however, it could be used to lower the operating millage rate. 

An example of this, a future Commission could lower the operating millage from its current 4.200 mils by the amount of debt service millage, for example 1 mil, to 3.200 mils of operating millage to maintain a total millage of 4.200 mils. Any decrease in operating millage rate is subject to the Commission approval at the time the budget is set, and this example does not guarantee any decrease in operating millage will be made.

No. It has been decreasing it. The Town’s current tax rate (referred to as the ‘‘millage rate’’) is the lowest in effect in at least 15 years.

The Town of Surfside currently does not have bond rating from any of the primary independent credit rating agencies (Moody’s, Standard and Poor, or Fitch).  The Town would go through the process of getting the general obligation bonds rated prior to the issuance of debt. The independent credit rating agencies would review the Town’s financial strength, stability, and the Town’s track record of prudent fiscal management.

None. The Town of Surfside’s Charter limits property tax-supported debt to no more than 15% of the total assessed property value in the Town for each fiscal year, which means that the Town cannot have more than $493.8 million in property tax-supported debt outstanding for the current fiscal year. If the proposed Bond Program is approved by the voters, the Town’s tax-supported debt would be 1.2% of the total assessed property value in the Town currently, which is well within the 15% permitted by the Charter.

"Undergrounding" utilities means removing utility poles and moving overhead utility lines underground. There are approximately 23 miles of above ground electric cable, 537 poles and 278 overhead transformers in Surfside. There are also miles of above ground AT&T and Atlantic Broadband cables and related devices. All of this will be gone when the project is complete. There are a number of benefits, including enhanced aesthetics, increased safety and reliability during storms, and a reduction in power outages caused by high winds or flying debris. Undergrounding also reduces the need for tree trimming in advance of a hurricane or tropical storm.

The project includes the undergrounding of all utility lines throughout the Town, including electrical and broadband, completed in three phases. Over the course of between three to five years, the utility poles and overhead lines will be moved underground in sections.

The process lasts about one week for each home, without any disruption in services. In some cases, driveways and portions of yards may need to be restored once the lines have been undergrounded. This is all part of the project. Residents will not lose access to their driveways and traffic disruptions should be minimal. Driveways will be replaced by the contractors and paid for as part of the project.

In the final phase of the project, utility poles will be removed and street lights will be placed.

As the project proceeds, technicians will place green transformer boxes and switch boxes above ground to allow for future maintenance and repairs.

If the project is approved, it takes about nine to 12 months to get into the "field."

First and foremost is reliability. Underground systems perform significantly better than overhead systems during extreme weather conditions and in day-to-day operation. Second, there is broad consensus that hurricane wind damage to below ground systems is much less than above ground systems. On the other hand, underground systems can be vulnerable to flooding. That is why this project includes waterproof switch gear boxes. The transformers on the ground are relatively easy to replace compared to replacing a pole particularly if that pole is in a backyard. 

According to FPL, underground power lines perform 50 percent better than overhead power lines under “normal” conditions, i.e. in times when there are no severe weather events. Undergrounding also is a well-known measure that communities take to reduce the likelihood of outages due to high winds and debris resulting from hurricanes or tropical storms. FPL reports that during Hurricane Irma, underground power lines in its service area “performed 85 percent better than overhead power lines because they were not affected by wind-blown debris, lightning and other elements.”

If you currently have a utility pole in front of your house, chances are you will likely get a smaller green box (roughly 2 ft. x 3ft. x 3.5 ft.). If there is a transformer on the existing pole, as part of the undergrounding, a transformer box will likely be placed on the property. 

Pedestals (green and white boxes) are placed roughly every three to four homes. About 299 transformers will be placed throughout Surfside, roughly every six homes. Additional smaller pedestals for housing utilities, such as internet and cable, will likely accompany the smaller transformer boxes. These are typically cylindrical or boxed shape and are roughly 30" tall. 

Vistas are larger units (73" long x 72" wide x 43" tall). Approximately three to five vistas would be placed throughout the community, likely near lift stations. 

The right of way is defined as a space giving the right for anyone to pass through an area of your land that is essentially considered public property. Rights of way vary throughout Town. 

Find the right of way in your area using our Right of Way Interactive Map.

Yes, as long as the landscaping does not deny access to the box and is placed at a minimum of 3 feet from the sides and 8 feet from the doors of FPL’s equipment. 

Conduit and cable can be placed underground, which eliminates poles. Switch cabinets need to be accessible to utility crews at ground level for timely maintenance, outage repairs, rerouting power and other functions. Green transformer boxes will still be located above ground, although not on every property.

Yes. The underground areas today were not paid for by the builders of the projects along Harding and Collins Avenues so the underground cost was not included in the price of the original units. These undergrounding costs were funded by the FDOT when Collins and Harding Avenues were upgraded so everyone’s gas taxes paid the cost including non-Surfside residents. Further, we are a community where everyone will benefit by the aesthetic and reliability benefits and our downtown will be much improved.

Yes. The wires that go to your house above ground will come in below ground. There will be an individual plan to bring the wires underground on your property. We will work with every impacted property to minimize the impact.

No. An entire group of homes must be energized with the new system and then the poles can be removed. Every home or business in a defined area must be connected before the area is converted. Not one home or business will be left out and the down time is very brief and you will be notified well in advance.

Underground utility lines are installed in PVC conduit, insulation and other protective materials to protect from damage. Above-ground transformers and VISTA switches are designed to resist damage from water intrusion, they can also be elevated on concrete pedestals. While more reliable in high-wind events, underground utilities are somewhat susceptible to flooding and rising groundwater levels.

Overhead, as well as underground facilities, are subject to deterioration from climate changes. New underground equipment technologies incorporate durable and resilient moisture damage components which withstand these impacts far better than existing systems.

While the exact location of underground damage or faults resulting from a storm event may take longer to identify, the inherent improved design and moisture resistant characteristics provide for superior resistance to damage and faster remediation than overhead facilities.