In its first meeting of the year, the Gainesville Regional Utilities Authority board had an eventful Jan. 14 session, approving a multi‑million-dollar water treatment contract, beginning a discussion about the city and utility passing parallel resolutions to authorize a $150 million bond, and voting to waive a conflict of interest with its attorneys.
Murphee Water Treatment Plant upgrades
With a price tag of $55 million, GRUA voted unanimously to hire Overland Contracting Inc. to renovate the Murphree Water Treatment Plant (MWTP).
GRU Water/Wastewater Officer Debbie Daugherty told the board that MWTP is the sole drinking‑water plant for GRU and has been treating and supplying potable water to customers since 1975.
The $55 million renovation will include construction of a new high‑service pump station, an additional 5 million‑gallon storage tank on site, and evaluation and construction of new interconnecting piping.The funds are expected to be spent from fiscal year 2026 through 2032.
$150 million bond request
While a decision wasn’t made, Mark Benton, GRU’s director of accounting and finance, asked the board to start thinking about allowing an issuance of up to $150 million in revenue bonds to finance constructions costs for “system infrastructure.”
This is included in GRU’s reduction plan, it will not raise rates for GRU customers.
With a timeline developed, Benton said this doesn’t mean the utility will undergo new debt but is maintaining existing lines of credit, limiting unhedged variable rate debt and generating fuel acquisition cost savings for future transactions.
The timeline would have GRUA directors meet one on one during the last week of January.
Followed by one on ones with city commissioners in the first week of February, followed by one-on-one meetings with commissioners the first week of February.
In the middle of February, both resolutions would be “hope” to be voted on, separately.
While the issuance process would start in April, Benton indicated that existing fund cash will need to be replenished by September 2026.
The last time GRU issued new money debt was July 2023, around when HB 1645 was put into effect.
“When we went out in July 2023, that number was about $150 million as well,” Benton said.
As of October 2025, GRU’s utility’s stands at $1.672 billion, down from $1.849 billion in October 2023, when the authority members were seated.
Mayor Harvey Ward told The Sun on Jan. 16 that he had not been formerly contacted about the issue and would have appreciated an email or phone call notifying him rather than hearing about it at the eleventh hour.
“What is a surprise is they’ve waited this long to get to it,” Ward said.
Conflict of interest waiver
Kiersten Ballou, an attorney with Folds Walker LLC who is representing GRUA in an upcoming appeal that will determine the fate of the board, sent a letter requesting that the board waive a conflict of interest between the city of Alachua and GRU.
Ballou informed the board that Folds Walker LLC recently began representing the city of Alachua and is currently negotiating a water line transfer agreement with the utility.
GRU’s attorney, Derek Perry, will represent the utility, while Folds Walker LLC would represent the city of Alachua during the negotiations.
“We are not permitted to disclose under Florida Bar rules any information that it may have heard about GRU without your informed consent, and we will not,” Ballou said. “I will tell you that I have not heard anything from GRU regarding this transfer.”
Perry said he read the letter and called the transfer minimal.
This article originally appeared on The Gainesville Sun: GRUA OKs $55M water treatment plant upgrade, weighs $150M bond
Reporting by Elliot Tritto, Gainesville Sun / The Gainesville Sun
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