2016.09.26 Council Agenda Item 11
Summary
Order to approve a supplemental appropriation and transfer in the amount of $1,000,000 from the Wastewater Enterprise Fund to finance a portion of the costs to replace the Mill Creek pump station and install force sewer mains.
A public comment period will be included with this item (3 minutes).
ACTION: Council action is anticipated.
Description
The Town Council initially approved this project and financing at their meeting on January 25, 2016. At their February 8, 2016 meeting the Council approved alternative financing arrangements with the Portland Water District after the Maine Municipal Bond Bank denied the use of revenue bonds to finance the project. An appropriation was not requested at that time since the project's total cost had not yet been finalized. On August 8, 2016, the Council reviewed the final project bid. The final step in financing the project is to approve an appropriation from uncomitted enterprise funds for $1 million. This appropriation will save the Town approximately $150,000 in interest expense and will not impact sewer rates. A spreadsheet showing the impact of the project to sewer rates is attached.
