Finance and Assessment

The Master Plan will provide an opinion of probable construction costs based on the input from each of the utilities and the experience of Kimley-Horn.  There are a variety of ways this project can be funded, briefly described below. Village staff may decide that a single method works for the entire project or they could decide that a combination of these methods works best.

General Obligation Bond (“GOB”) Debt

  • Requires approval of qualified electors (registered voters)
  • Financial burden based on assessed taxable values
  • Subject to Village’s Debt Cap

Special Assessment (SA)

  • Requires approval of property owners only
  • Financial burden based on the relative benefits to each property
  • Not subject to Village’s Debt Cap

Covenant to Budget Appropriate (“CBA”) Non-Ad Valorem Revenues

  • Requires Village Council approval only
  • Financial burden based on assessed taxable values
  • Subject to Village’s Debt Cap

Hybrid and other Alternatives

  • Combination of SA and CBA
  • Other Revenues: Franchise fees

It is expected the Village will enter an Underground Facilities Conversion Agreement with FPL for the conversion of Village-wide overhead facilities. In accordance with the FPL Tariff, this program qualifies for a Government Adjustment Factor (GAF) waiver credit of 25%. The GAF waiver credit amount has been estimated at 25% of the total estimated FPL CIAC (contribution-in-aid-of-construction) cost to install the underground system, in accordance with budget cost estimates provided by FPL and the FPL Tariff.

In the latest tariff revision, effective February 22, 2018, certain elements of the CIAC calculation can be excluded if the applicant intends to convert existing non-hardened feeder facilities to underground feeder facilities. The calculation would exclude the cost to remove the existing overhead feeder facilities and the net book value of those feeder facilities. In turn, however, the applicant does not get credit for the estimated salvage value of the existing overhead facilities to be removed. Despite that, the revision typically results in a lower CIAC to be paid by the applicant.

If the Village decides not to underground at this time but later desires to underground after FPL’s storm hardening has taken place, the Village would forfeit this credit.