Council approves $27.4 million transfer in amendment for new public works operations facility

The Sumner City Council unanimously approved Ordinance 2920, a mid-biennial budget amendment to fund the new public works operations facility.

Chief Financial Officer Cassandra Raymond told the council the city has been studying a replacement public works facility since before February 2017 and that the new complex will total more than 102,000 square feet across six buildings on about 6.2 acres. "The total cost of the project across all of the phases is $65,900,000," Raymond said, and she said the allocation is 49% to the general fund and 51% to utility funds.

Raymond said staff evaluated multiple funding options, including low-interest federal loans and private financing, and concluded the financing plan relies on a package of low-interest loans, a bond anticipation note, a public works trust fund loan, proceeds from the sale of the Sumner Meadows Golf Course (deposited to the capital reserve fund), and revenue debt for the utility portion.

The ordinance appropriates $27,414,048 from the capital reserve fund (the account holding the golf course sale proceeds). Of that amount, $2,100,000 will be transferred to the debt service fund (fund 200) to retire the governmental portion of the bond anticipation note used for demolition and preload earthwork; $25,300,000 will transfer to the capital facilities fund (fund 325) for construction costs of the main facility. Raymond also described recognition of a water/sewer revenue bond expected under the companion ordinance and a $4,300,000 payoff of the original bond anticipation note upon issuance of long-term financing.

Council member Beteto moved to approve Ordinance 2920; Council member Reinke seconded. The roll call was unanimous and the ordinance passed.

Raymond said construction is phased: earthwork (already completed in part), completion of the decant facility on the north parcel (anticipated later this spring), and construction of the main facility beginning this spring with completion near February (the transcript records "near the February"). The council scheduled a groundbreaking for March 3 at 4 p.m., prior to a regular meeting, the city administrator announced during reports.