City looks to ‘commercial paper’ for utility borrowing
Public hearing set for Sept. 16 as Cape Council looks at short-term financing of up to $350 million
A public hearing was set for an ordinance that would increase short-term, unsecured borrowing by $350 million for water and sewer projects.
After the introduction of Ordinance 52-26, Councilmember Rachel Kaduk had questions about the commercial paper proposal – did it include any funds for the Yacht Club, Festival Park, Bimini East, or the Utility Expansion Project.
Financial Services Director Crystal Feast said during Wednesday’s Cape Coral City Council meeting that the commercial paper obligation increase of $350 million — from $150 million to $500 million — is specifically related to a revenue sufficiency study presented to council in April, which included options for funding future projects for the utility system.
“At the time we got a consensus to move forward with commercial paper,” Feast said. “The $350 million increase is specific to water and sewer.”
She said the commercial paper would not fund the assessment portion of the water and sewer projects.
Councilmember Jennifer Nelson-Lastra said commercial paper verse bonds is more cost effective because the city can draw on the commercial paper as they go.
“This lets us do it little bit by little bit,” she said.
The public hearing is set for Wednesday, Sept. 16.
To reach MEGHAN BRADBURY, please email mbradbury@breezenewspapers.com