The town no longer needs to borrow $7 million — or even 7 cents — to finish its 10-year capital improvement project and hook up to Boynton Beach’s drinking water system.
Gulf Stream has already paid $12.9 million for the Core area’s portion of the capital improvement plan and will owe $1.6 million more as work finishes, Town Manager Trey Nazzaro told town commissioners May 8.
He and Chief Financial Officer Mark Bymaster also estimate spending $1.8 million on the water connection, $4 million on resurfacing roads in Place Au Soleil and $900,000 for similar work in Hidden Harbour. But those costs will not be paid until next year and later, Nazzaro said.
“So, because of this time delay, Mark believes the loan is not needed at this time, if ever,” Nazzaro said. “And if we were to draw any money on the loan now, we would just be paying interest unnecessarily while maintaining healthy reserves well in excess of the $4 million.”
Mayor Scott Morgan called it a “remarkably favorable result.”
“It’s what we always had intended to do, was to not have to borrow money for these projects, to pay for them as we go and maintain solid reserves,” the mayor said.
Gulf Stream may still ask Seacoast Bank to extend the potential loan’s draw period another 12 months, commissioners decided.
— Steve Plunkett
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