Council authorizes revolving line of credit for water/sewer projects and approves budget adjustments

The Punta Gorda City Council approved a three‑year taxable revolving line of credit and a set of budget amendments at its April 22 meeting to keep utility capital projects moving while longer‑term funding is finalized.

Finance Director Kristen Simeone told the council the Regions Commercial Equipment Finance LLC line of credit will provide interim financing for capital improvements to the city’s water and sewer system, including the Reverse Osmosis (RO) expansion project. The line is structured as taxable and uses non‑ad valorem (non‑ad valorem) revenues as the pledged source; staff emphasized they will use SRF proceeds and grant reimbursements first to minimize draws on the line.

Simeone said the facility has no unused fees or prepayment penalties and that draws will be repaid as grant reimbursements arrive. Bond counsel and the city’s financial adviser were present to answer questions. Council approved the resolution authorizing execution of the line of credit.

Separately, the council approved budget amendments (4B) to reappropriate and supplement funding across the gas tax fund, information technology, general fund and construction funds to allow purchases and multiyear projects (including a planned fire apparatus purchase that may take two-plus years). The council also approved an easement vacation (4C) that had previously been publicly heard.

Council members asked for clear tracking of reimbursements and to avoid drawing on the line of credit where grant or SRF funding is available. Simeone said issuance costs will be allocated to the utility project and that the city does not plan immediate draws if SRF funds are available.

The financing action gives staff flexibility to issue purchase orders and advance work while the city completes grant and permanent financing arrangements.