Pensacola Council President Charles Bare has an alternate method to pay for the construction of a new Fire Station #3.
He plans to propose funding the rebuilding of Fire Station #3 from the Council Reserve Fund, which would reduce the reserve fund to a balance of $5,402,042.66.
This fund would be replenished in accordance with Council Policy, plus any additional interest that would have been earned on the $3,300,000, according to Bare’s proposal. See Rebuilding of Firestation #3 Add On Item
Mayor Ashton Hayward has recommended the construction be done by borrowing the necessary $3.3 million and repaying it with 2017 Local Option Sales Tax revenues.
The cost of borrowing the funds from the Council Reserve Fund should be a savings over the cost of the city issuing bonds on the project. The 2017 LOST revenues could be used to replenish the reserves.
The City CFO Dick Barker would need to do calculations to verify any savings.
Attachments to Bare’s resolution:
February 2016 Fire Station #3 Resolution Explanation