Courtesy Town of Winter Park
In anticipation of the construction of Winter Park’s new public works facility, the town council approved an increase in the debt issuance the town can incur to finance the project at its regular meeting Tuesday evening.
Council members unanimously approved an ordinance to finance the public works facility with a debt issuance of $11.5 million.
“When we started discussing this project with council, we had been looking at an $11.5 million issuance all along,” Town Manager Keith Reisberg said. “It was only as we started getting preliminary numbers on the project that we tried to decrease to $10 million, but with the recent increase in our site development cost, we’re going back to the original $11.5 million.”
The ordinance also extended the site lease term and the lease purchase agreement by one year.
The council initially had hoped to keep the debt issuance to $10 million to take advantage of the interest savings of a bank-qualified debt, which is a debt issuance of $10 million or less. However, Reisberg noted that the town’s financial advisors feel this move won’t impact the interest rate significantly.
“There is a slightly higher (interest) rate, but not substantial,” Reisberg said. “The town does have the ability to borrow less than the full $11.5 million if we’re able to bring down the final guaranteed maximum price of the project. We’re continuing to work with the contractors and design engineers to bring the site costs down.”
Per the approved 2020 budget, the town expects the project to cost roughly $10.9 million.
Moody’s, a financial services company, will issue the financial rating for the project on Dec. 6, certificates of participation will be sold on Dec. 17 and the town expects financing to close on Dec. 30.
In other business…
- The council approved a special use permit for a New Year’s Eve celebration at the Headwaters Center in partnership with the Grand County Blues Society. The event will be from 9 p.m. to 1 a.m. on Dec. 31.
- A resolution to change the town manager’s contract was approved. The resolution amends the severance provision of his agreement to provide a one-year severance in the event employment is terminated without cause. Previously, the agreement provided a 3% salary increase in the event employment was terminated without cause.
- The council approved a second reading for an amendment to the Roam development, which would allow garages to be located 5 feet from the property line on private drives or access easements.
- In one of the last steps of the 2020 budget process, the council certified the property tax levy at 3.436 mills per dollar of total assessed valuation. Winter Park net assessed valuation is $136.5 million, which is expected to generate $469,201 in revenue.
- The council also approved extra expenses to this year’s budget, including $150,000 to the transit fund, $140,000 for the new Fraser Winter Park Police Department office and $10,000 to the employee benefits fund for claims.