Council briefed on wastewater plant, DPW facility financing and potential building-authority debt

City staff told the council that financing for the wastewater treatment plant and the planned public works facility will use multiple mechanisms, including Local Development Financing Authority (LDFA) revenue and bonds issued through the Mason Building Authority.

Stewart said the LDFA will pay a large portion of the wastewater debt each year for the life of that loan, reducing rate impacts for users. "Without them identifying this project in the plan years ago, our rates would almost double for our residents, without their contribution," Stewart said.

Staff described the Mason Building Authority as the vehicle to obtain debt for the public works facility and move proceeds into the capital improvement fund for construction. Stewart said staff and financial advisers have run flow charts and due diligence on the structure and that the council previously took actions earlier in the year to advance that plan.

Council discussed related capital items, including an office building remodel tied to the wastewater project. Stewart said the remodel and a SCADA request could potentially be packaged as a change order within the existing state-financed project if the state approves; if not, staff may defer the office remodel to later fiscal years.

Staff warned that some cost estimates are coming in higher than originally expected and that final project accounting will be clearer as the wastewater project approaches completion. Stewart said the project team expects better clarity toward the end of the project and that any change orders would be brought to council for consideration.