Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy topic
No spam. Unsubscribe anytime.
City adopts equipment-loan ordinance to fund airport solar-covered parking
Summary
The board adopted an ordinance authorizing an equipment loan agreement with the Arkansas Energy Office and Arkansas Development Finance Authority to draw roughly $1.1 million for a solar-covered parking project at the airport and attached an emergency clause to enable timely drawdown.
The board adopted an ordinance authorizing execution of an equipment loan agreement between the city, the Arkansas Energy Office and the Arkansas Development Finance Authority to fund a solar-covered vehicle parking project for the airport.
Paul, who presented the project on behalf of the airport authority, said attorneys negotiated language with state counsel to clarify the city–airport legal relationship and that the loan includes an emergency clause to permit drawdown within the fiscal year to capture federal credits. Paul told the board the project was expected to yield about $100,000 annually in energy-cost savings once the contractor completes installation and the system is turned on; he added the contractor had not yet been paid in full and therefore had not energized the system.
Board members questioned repayment language in the loan documents, noting the ordinance describes the obligation as a special obligation payable from energy-savings revenue but also contains language that would allow repayment from any lawful city revenues. Paul and staff said the airport intended to make direct payments from airport funds; staff also said the loan and anticipated interest had been included in the FY25 budget.
The city attorney read the ordinance on first, second and third readings in abbreviated form; the board adopted the ordinance and attached an emergency clause. The ordinance authorizes the city manager and staff to complete draws necessary to pay contractors and close out the project.
Why it matters: The ordinance enables a capital project that the airport and staff say will reduce electricity costs for the terminal and provide covered parking; the project also requires coordinated financing and intergovernmental paperwork to ensure the airport, the two cities and the state authorities align on payments and credit capture.
Board members asked staff to provide amortization details and to include city financial officers in drawdown decisions. The board did not change loan terms at the meeting.
