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Council authorizes engagement letters to explore financing for $40M wastewater expansion
Summary
Council authorized letters of intent and engagement with the Florida Municipal Loan Council, PRAG, and bond counsel (BMO) to evaluate financing options for an estimated $40 million wastewater treatment‑plant expansion; staff said $3M in grants have been awarded so far and PRAG’s initial analysis can be capped under $20,000.
Council authorized staff to execute a letter of intent with the Florida Municipal Loan Council (FMLC) and engagement letters with Public Resources Advisory Group (PRAG) and Bryant Miller Olive (BMO) to assemble a financing team and evaluate options for a planned wastewater treatment plant expansion, estimated at roughly $40,000,000.
Rodney Walton of the Florida League of Cities said the FMLC serves as a vehicle to coordinate financing and professional teams for municipal projects and highlighted the program’s ability to RFP bank loans or coordinate bond issues; Walton said having the League and its team in place often reduces issuance costs. PRAG’s representative described tradeoffs between a bond (longer term, likely lower rates, higher issuance costs, typical 10‑year call) and a bank loan (shorter term, more prepayment flexibility). PRAG’s initial advisory work was described as hourly and expected to be modest (Prag’s initial services were discussed with a possible cap under $20,000), with transaction fees payable only from bond or loan proceeds if a transaction closes.
City staff said they have been awarded $3,000,000 in grants for the project and have requested an additional $1,000,000 appropriation. Council members stressed that tonight’s authorization does not commit the city to issue debt; instead the engagement will produce detailed numbers, interest‑rate scenarios, and a comparison of bank vs. bond structures for council consideration.
Following discussion about expected timing and how grant receipts or connection fees from future developments might affect repayment, council voted to approve the engagements and letter of intent and asked staff and consultants to return with a market analysis and specific financing recommendations.
