Auburndale approves $11.5 million loan to fund effluent filter replacements and plant expansion design

The Auburndale City Commission on March 16 authorized the issuance of a non-ad valorem revenue note in the principal amount of $11,500,000 to fund effluent filter replacements and the design and engineering costs for expansion of the Regional Wastewater Treatment Plant.

City staff engaged Public Resources Advisory Group (PRAG) to solicit borrowing proposals and received eight responses. Staff, bond counsel and PRAG recommended TD Public Finance (TD Bank) as offering the most competitive financing with a fixed-rate option locked at 3.36% and no prepayment penalty; staff recommended acceptance of TD Bank’s proposal. Finance Director Christopher Reeder and Interim City Manager Amy Palmer reviewed the responses and summarized the recommendation to the Commission.

Vice Mayor Jordan Helms moved to accept the TD Bank proposal; Commissioner Crystal Tijerina seconded, and the motion passed unanimously. The Commission then approved Resolution No. 2026-02 authorizing execution of the loan documents and a promissory note for the Series 2026A note. The resolution states the note is payable from budgeted non-ad valorem revenues and net water and sewer system revenues on a junior and subordinate lien basis.

The loan will fund replacement of effluent filters at the Allred and Regional Wastewater Treatment Plants, design and engineering for expansion, and related issuance costs. The staff recommendation and resolution were prepared with assistance from bond counsel and reviewed by Finance Director Reeder and the Interim City Manager.