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County manager presents CIP shortfalls; commissioners clash over deploying $25 million revenue‑replacement loan
Summary
Lee County’s county manager presented the draft FY2025–26 capital improvement and major maintenance plan, warning the general‑fund CIP could go negative. Commissioners debated using a $25 million state revenue‑replacement loan now for repairs and cash flow versus holding it for operating requirements; staff will return with options by June 17.
County manager Pete (S7) gave commissioners a first look at the draft fiscal‑year 2025–26 capital improvement plan and major maintenance budget on June 3, warning that the general‑fund CIP may run negative next year under current assumptions and that large enterprise projects will likely require bond financing.
“We want to wait till after year end when our year end closes and we know exactly what our reserves are going to be, and then we'd like to come back to the board in December and actually fund those projects,” Pete said, describing a cautious approach to appropriating general‑fund CIP. He outlined priority projects including the 10‑mile Canal South flood mitigation work, five EMS stations (about $25M total with $15M saved and ~$10M unfunded), and a long‑planned $30M medical examiner expansion with no dedicated funding source.
Commissioners pushed back on timing and prioritization. One commissioner pressed to deploy the $25 million state loan immediately for visible recovery projects and cash‑flow relief: “I don't see how we don't put the $25,000,000 into play,” the commissioner said, urging staff to identify small, rapid projects that could be completed while FEMA processes continue. Other commissioners and staff noted the loan must be used for operating costs and recommended staff provide a repayment/sinking‑fund plan (the loan is repayable in seven years) and a clear legal interpretation of allowable uses.
The board also questioned the price tag on a proposed $130M material‑recovery facility. A commissioner said he wanted a full financial review before committing to large borrowing for recycling infrastructure; staff agreed to return in August with financials and design alternatives.
On transportation, staff said the current‑day cost for a major Burnt Store Road widening is roughly $180M; the slide used a projected build‑year cost that assumes a construction horizon 7–8 years in the future, which inflates the figure. Pete said staff will work with financial advisors to size bonds for enterprise projects and explore rate adjustments, impact fees, and an infrastructure sales tax as possible revenue options.
Next steps: staff committed to provide by June 17 a packet that includes the MRF financial review, a five‑year account of general‑fund subsidies to capital projects, allowable uses and timing options for the $25M loan, potential electric franchise‑fee revenue impacts, and analysis of an infrastructure sales tax and other revenue alternatives for large projects. The board directed staff to return with prioritized project lists and financing scenarios for August and subsequent meetings.
The workshop adjourned after staff summarized these follow‑ups and the board indicated interest in deeper analysis on bond sizing, potential rate increases for enterprise funds and the tradeoffs of deploying the state loan now versus preserving it for operating cash flow.
