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Council approves authorizations for assessment and revenue bonds to fund North One East utility and water/sewer projects
Summary
Council approved enabling ordinances and companion bond resolutions that authorize the city to sell assessment‑backed utility improvement bonds (up to $110 million) and water/sewer revenue bonds (up to $100 million) to finance infrastructure in the North One East area and system‑wide water and sewer capital projects; staff said final pricing will be set at market sale and assessments will be structured so beneficiaries pay over time.
Cape Coral’s council on May 6 authorized two financing frameworks to fund utility expansion and system improvements.
Finance staff presented Ordinance 24‑26 (and companion Resolution 96‑26), which authorizes issuance of up to $110 million in utility improvement assessment bonds for the North One East assessment area. The assessment approach allows property owners who directly benefit to repay infrastructure costs over time; staff said the not‑to‑exceed amount reflects conservative buffers for capitalized interest and issuance costs. Preliminary estimates for the bond proceeds were presented; final terms will be set at pricing, tentatively scheduled for mid‑June.
Council also approved Ordinance 25‑26 and Resolution 105‑26, authorizing up to $100 million in water and sewer revenue bonds for system‑wide projects (including irrigation booster tanks, transmission lines, pump stations and reservoir connections). Staff described estimated all‑in true interest costs (preliminary market estimates) and projected maturities designed to match the useful life of assets. The financial director explained that the city’s charter requires council authorization by ordinance and delegated a number of sale details to a bond resolution and city manager/financial director authority for market timing.
During public comment several residents asked for clearer explanations about assessment mechanics, how interest will be calculated, and the distribution of long‑term costs; staff explained that the 'not‑to‑exceed' numbers are conservative authorizations and that final interest rates and par amounts will be set at sale. Staff and council argued debt spreads costs to future beneficiaries and generally yields lower interest rates than private borrowing because municipal interest is typically tax‑exempt to investors.
Next steps: staff will proceed to the negotiated sale process and return final financing documents and pricing to the council as required by the delegated bond resolution process.
