Town Council will be discussing the expansion of wastewater capacity to a multi-family development project in the R-3 district that is currently not being serviced.
Staff provided the following options, which will be discussed at the September 5th Town Council special meeting.
- The first is the tap into the available line of credit to pay for the project upfront out of a single funding source. Staff finds pros and cons associated with this option. The funds are immediately available and could be designated for this capital project once the appropriate budget amendment process is completed. Conversely, this is a long-standing line of credit available to the town which has not been tapped, and that discipline can be continued unless and until a reason requires otherwise. This project does not meet the standard of such a reason.
- The second option is including this project in a bundle of other capital projects (extensive sidewalk installation, repair, replacement; water meter upgrades; infiltration and inflow repair; fishing pier upgrade; street sweeper) in a similar cost range which could be financed over a long period of time through bonds. On October 3, 2019, the firm of Davenport and Company will present Town Council with financial forecasting information including the ability to carry additional debt. Pending that presentation, staff proposes no action on this option.
- The third option is financing this project through capital project expenditures already included in the adopted the fiscal year 2020 budget. The appropriate “donor” project would need to be identified and future funding for that donor project would need to be found and budgeted for.
- The fourth option includes self-financing the project. This option presents a timely payback to the utility fund as development generates
The town manager also encourages the Council to consider an increase in the connection fees for residential units of two or more bedrooms from the current $12,350 to $15,000. The current fee does not limit development in Cape Charles as is evident by the increase in housing unit construction in recent years. An additional cost of less than $2,700 will not stunt development and will more quickly re-fund the utility funds tapped for this project.