BY MARK J. CRAWFORD
Telegraph Editor
STARKE — Florida Municipal Power Agency’s Pooled Loan Program could provide funding for utility projects in the city of Starke.
While loan proceeds were included in this year’s budget, a loan application has not been submitted. Operations Director Scott Anaheim, who has been researching the process, said he doesn’t want to move forward without commission’s blessing
There was a conference call between the director, city clerk and manager to discuss the details of borrowing the funds prior to the Oct. 19 meeting.
Interest rates are low, which is fortunate for the city. The city can borrow a minimum of $1 million and a maximum of $2 million at one time.
Anaheim said they should go for the maximum amount to accomplish some needed utility projects.
He said Starke customers pay less than other FMPA members, calling pricing “really good.” Anaheim said customers may not realize that because they see the total cost of electricity, water and sewer, and possibly natural gas.
He also claimed they have done a lot over the past few years to reduce outage times, and he is looking for a resource that will show that in comparison to other utilities.
With that said, there’s still a lot of work that needs to be done, including properly spacing lines that have been sagging since the 13-kilovolt upgrade years ago.
“If we’re going to try to grow the community and grow business here, we’ve got to do something to show that we have reliable electric,” he said.
That’s why the loan is important. He said they have assessed the system and identified areas that need to be addressed, even eliminating an electrical circuit, which will reduce future maintenance.
Other upgrades will improve reliability and allow linemen to make repairs while impacting fewer customers with outages. There will also be more proactive tree trimming and line protection, including animal guards.
The loan revenue can be used to improve other utilizes besides electricity. For example, they want do replace the natural gas metering and odorizer station, which will require around $300,000.
The city wasn’t allowed to use COVID-19 relief funding for that project, or to purchase the new bucket trucks Anaheim hopes to acquire with the FMPA loan. The estimated cost is $140,000 to $160,000 each, and vehicle delivery could take more than a year.
Based on current information, the city could receive a 1.77% interest rate to start with up to 10 years to repay, plus closure and annual administrative costs. The city may consider repayment over a shorter term, and then apply for a new loan.
Anaheim said he still has a lot of homework to do. It is not as simple as approaching FMPA with an open hand. The city needs projects ready to go, he said.
The commission supported moving forward, although a final vote on borrowing the funds is yet to come.
