Wildwood no longer faces a crisis in wastewater treatment capacity, City Manager Jason McHugh told commissioners Monday.

Maintenance improvements and construction progress on the new wastewater treatment plant mean the city’s capacity is adequate to handle new developments.

McHugh said a temporary DAVCO plant will be installed next August, which will increase the city’s daily capacity to 4.5 million gallons.

Commissioners heard reports on wastewater capacity, construction progress and the issuance of revenue bonds to pay for the new plant at a Monday morning workshop meeting.

Wildwood’s rapid growth, including new homes in the Villages of Southern Oaks along with apartment and commercial projects, have strained the city’s wastewater treatment capacity.

In May last year, commissioners put a hold on some residential and commercial projects due to capacity concerns.

Rainfall that infiltrates the system is a major factor boosting Wildwood’s wastewater treatment levels.

McHugh said less rainfall since Hurricane Milton last year reduced daily wastewater flows to 1.9 million gallons last May, increasing to 2.4 million gallons in September.

The new plant and related projects such as a pump station and effluent storage improvements are expected to cost $162 million, said Assistant City Manager Cassandra Smith.

She said the city has financing of about $40 million in grants, fees and transfers from the general fund.

Wildwood has applied for another $87 million in grants and loans, but approval and the timing remain uncertain.

In February, the city will issue $70 million in revenue bonds to cover a major portion of the cost. Another bond issue is planned for early 2026 when the status of the pending grants and loans is clearer.

“We’re probably going to have a sizable second bond (issue),” Smith said.

Bonds will be repaid with user fees.

Bond advisor Natalie Sidor of the Public Resources Advisory Group said Wildwood has prepared well for the bond issue by increasing wastewater user fees for the last few years.

Mayor Ed Wolf said the city’s growth should interest investors.

“There’s so much on the horizon that it should be very attractive for the underwriters to sell these bonds,” he said.