Finance committee approves Option 2 to advance Noah's Ark design using Elevate cash; reimbursement resolution to follow

The Tuscaloosa City finance committee voted to proceed with Option 2 to fund initial work on the Noah's Ark drainage and infrastructure projects, directing staff to return a reimbursement resolution to the committee so the city can use available Elevate funds now and reimburse those expenditures from a future bond issuance.

Carly, the staff presenter, described a two-phase approach the mayor had proposed: roughly $15,000,000 for Phase 1 to start design and planning, followed by a full bond issuance later for approximately $50,000,000 to reimburse early expenditures when final cost estimates are known. Carly told the committee that the city received a market quote near 3.91% for a potential line of credit and that drawing a $15,000,000 line of credit gradually over 30 months at that rate would produce roughly $782,000 in interest costs. She recommended using cash on hand designated in Elevate, including about $4,400,000 earmarked for the University Boulevard West campus portion, for early design work to limit interest expense and delay large borrowing until necessary.

Committee members discussed timing for permitting and the different pacing of drainage projects; some projects, such as Riggs Road, might be executable in 12—18 months while others require Corps of Engineers permitting. The group noted that using Elevate cash now could allow immediate starts on projects that do not require long permitting lead times and that the city could activate the reimburse mechanism by council resolution. A motion to pursue Option 2 carried on a voice vote. Carly said she would bring a reimbursement resolution back to the committee at the next meeting for formal action.