Summary The City Commission's adopted FY 2018 Strategic Plan includes water and wastewater infrastructure initiatives (Initiatives 1.1 and 1.2, respectively) for future growth as two of the highest priority initiatives. To this end, the City Commission adopted Ordinance 18-23 to provide the improvement mechanism and establish infrastructure improvement area fees to recover the cost of these infrastructure improvements.
Three improvements areas were identified:
1) Alachua East Wastewater Collection Infrastructure Improvement Area;
2) Alachua West Wastewater Collection Infrastructure Improvement Area; and,
3) Alachua West Water Distribution Infrastructure Improvement Area.
The design for the infrastructure improvements in these areas is complete and bid documents are being prepared. The total cost estimate for the projects is $5,450,000. The FY 2018-2019 Budget includes $1,500,000 to go towards these projects with the remainder to be financed.
Staff has consulted with Public Financial Management, Inc. (PFM), the City’s financial advisers, regarding these needs. Preliminary discussion has revolved around financing alternatives centered on the availability of funds based on need, term and timing.
Upon review of these factors, it is the mutual opinion of PFM and City staff that the necessary financing be obtained through a bank loan in order to meet the timing needs and enable for possible early payoff given the new revenue stream.
In order to secure the loan, staff intends to engage PFM and Bryant Miller Olive (BMO) as outside counsel. It is anticipated that engagement costs will not exceed $40,000.
Final financing documents would be brought before the City Commission for approval. |