SUBJECT
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Financing Plan for the Southeast Wellfield Project (Information)
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DESCRIPTION
As described to the Southeast Wellfield Board of Directors at the September 18, 2024 meeting, additional funding needs have been identified for the project. These additional funds are necessary due to construction cost increases and the anticipated delay in receiving grant funds from the Southwest Florida Water Management District. The Board subsequently requested the PRWC provide additional funding options to the Board at the November 20, 2024 Board meeting.
As PRWC’s Financial Advisor, PFM analyzed alternatives to meet these needs, including lines of credit, SRF, WIFIA, and the issuance of tax-exempt bonds. Due to the low interest cost, PFM recommends requesting SRF funding for the Southeast Wellfield project in the amount of approximately $122.7 million in December 2024 and SRF funding for the West Polk project in the amount of $41.8 million in 2030. A line of credit can help bridge the SRF funding as the current annual cap is $25 million. Additional WIFIA funding is a low cost alterative if SRF funding is insufficient.
The District shortfall can be funded on an interim basis with an approximately $26 million line of credit, which may not be needed until 2026.
RECOMMENDATION
Information item only, no Board action required
FISCAL IMPACT
Due to construction cost increase, the Southeast Wellfield Project currently has a funding deficit of approximately $122.7 million. The West Polk project deficit is anticipated to be approximately $41.8 million. There is no immediate fiscal impact until loan/financing documents are presented to the Board of Directors for final approval and execution.
CONTACT INFORMATION
Julie Santamaria, PFM Financial Advisors LLC