ITEM TITLE:
#24-28 - Amending the 2024 City Budget by Transferring $550,000 of 2022 General Obligation Bond Proceeds to Municipal Well #5 Project
SUBMITTED BY: Jordan Nelson, Finance Director
FISCAL NOTES:
Expenditure Required: $550,000
Unencumbered Balance: $5.9MM
Funding Source: 310-2536-58010 Sewer Force Main Bond Proceeds
RECOMMENDATION:
Approve Resolution 24-28.
SUMMARY STATEMENT:
In October of 2022 the City of Valdez issued a General Obligation Bond (GO22) ratified by voters for the purpose of replacing the sewer force main and certain water and sewer infrastructure.
The Sewer Force Main Replacement is well underway, and cost estimates project that sufficient funds remain for the Municipal Well #5 Project.
Municipal Well #5 is projected to costs approximately $5MM, and will likely account for most of the remaining Unencumbered Bond Proceeds. A subsequent resolution will fund construction when that dollar figure is clear, this resolution is for design.
Well #5 was projected to be replaced with funds from GO22, however, the actual costs of Sewer Force Main Replacement were unknown at the time of issuance. Council elected to include the phrase “…and Certain Water and Sewer Infrastructure” in case specifying the well project was too prescriptive in which case the needed funding for the well’s construction would be substantially more than remaining proceeds after finalizing the Sewer Force Main Replacement.
This use of proceeds for the Municipal Well #5 Project has been reviewed and determined under guidance from bond counsel.