City to take on $18 million bond debt

What started as a request before the St. Augustine City Commission for permission to borrow $22.5 million for capital improvement projects, through the sale of municipal bonds, has been approved — with a pared-down ceiling of $18 million.

According to Assistant City Manager Tim Burchfield, the amount requested was reduced after city staff studied more current estimates of the city’s cash flow. “High priority was given to the city’s ability to carry the bonded debt without raising property taxes.”

Projects and amounts include;

Riberia Street $6.7 million
Utility improvements $5 million
Municipal Marina dredging and breakwater $2.5 million
$1.2 million for Riberia Street landfill bulkhead, wayfinding signage, sidewalk and street improvements.
$15.4 million of the funds raised by the sale of the bonds will go toward capital improvement projects; the balance goes toward anticipated fees and closing costs.

Officials hope to go into the marketplace in the next two weeks and close on the bond sale by the end of April. The city’s bond underwriter, Mitch Owens of RBC Capital Markets, said the city has an excellent bond rating.

Among projects cut in the pared-down list is a new fire station on Anastasia Island. Burchfield said the city hopes to adjust other project funding to provide $30,000 for hurricane shuttering of the existing fire station.