Council directs staff to pursue bond financing for public works facility and Zephyr Park after review of plans
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Summary
Council gave unanimous direction to staff July 28 to advance a financing plan (bond issuance) to fund a new public works facility and Zephyr Park improvements; staff outlined project costs, proposed paydown and an annual debt-service estimate of about $1.48 million at current market rates.
The Zephyrhills City Council on July 28 directed staff to proceed with a proposed financing plan that would combine construction and rehabilitation of a new public works facility with improvements to Zephyr Park, using a mix of cash paydown and long-term municipal bonds.
Finance Director Ted Beeson reviewed project totals and proposed funding: a public works program with facilities and rehabs totaling roughly $27.93 million and a Zephyr Park build-out budgeted at about $16 million. Staff proposed using $5 million of general-fund balance and $5 million of capacity fees to reduce the public-works financing need by $10 million, leaving approximately $17.9 million to be financed. The sanitation portion ($3.5 million) would be fully financed. For Zephyr Park, staff showed a $16 million total with an anticipated $5 million Community Development Block Grant (CDBG) request, a confirmed state appropriation of $2.6 million and $4.3 million to be financed if the CDBG award is received; if not, additional financing would be required.
Beeson and financial adviser Jeff Larson reviewed market expectations and debt mechanics. Larson said current pricing for the 25–30 year part of the curve implied rates around 5.1 percent; using that rate, staff estimated annual debt service at roughly $1.48 million per year for the combined financing. Larson explained bond structuring, the need for standard engagement letters (bond counsel, disclosure counsel, investment banker) and that bonds typically have a call-protection window of about 10 years before refinancing is feasible.
Council and staff discussed alternatives including bank loans, penny-for-Pasco revenues, and the timing of retiring other city debt. Council members asked staff to refine schedules and confirm whether Alice Hall community center replacement should be included in the financing package; staff said they would identify cost estimates for Alice Hall and return with options. Council passed a motion directing staff to proceed with the recommended financing steps and to return with engagement letters and the formal financing timetable.
Council did not adopt final financing documents or set an exact issuance amount; the vote authorized staff to pursue the procurement and preparatory steps necessary to bring a bond resolution and pricing request back to council for formal approval.
