Ordinance 03-22
To: Members of Dublin City Council
From: Dana L. McDaniel, City Manager
Date: February 8, 2022
Initiated By: Matthew L. Stiffler, Director of Finance
Re: Ordinance 03-22 – Amending the Annual Appropriations for Fiscal Year Ending
December 31, 2022 (Q1 – Deer Run Force Main and Lift Station Project – Debt
Financing)
Summary
Ordinance 03-22 amends the annual appropriations for the fiscal year ending December 31, 2022
Summary to provide supplemental funding for debt financing the Deer Run Force Main and Lift Station
Project previously approved in the City’s prior 2021 – 2025 Capital Improvements Program (CIP) as the
Deer Run Sanitary Sewer – Group #1 Project (ES-179).
This project, which includes installing approximately 12,750 linear feet of 16-inch force main (sanitary
sewer) and a wet-weather sanitary pump station (lift station), was recommended in the Deer Run Sewer
Modeling Report (2012). The lift station will be located on the existing sanitary sewer alignment near
Deer Run and west of the Dublin Road right-of-way on property formerly owned by the Muirfield Village
Golf Club (MVGC). The force main will be located along Dublin Road between Deer Run and Emerald
Parkway. Project design began in 2019 and was substantially completed by the end of 2021. The
resolution accepting the lowest and best bid for construction of the project is planned for Council’s
approval during the February 28, 2022 meeting. The lowest and best bid was submitted by Elite
Excavating Company for $4.98 million.
Funding History
Based on the 2020-2024 CIP, the construction of the Deer Run Sanitary Sewer Project – Group #1 was
estimated to be $2.92 million. In 2020, the City issued $3 million in debt for the project as reflected in
the amounts below. In order to provide $5 million for construction of the referenced project as efficiently
as possible, staff reviewed the bond proceeds remaining in the Sewer Construction Fund (Fund 623).
Staff determined the funding listed below is available for use in funding the Deer Run Sanitary Sewer –
Group #1 Project as the projects associated with those funds have been completed. By utilizing remaining
funds from earlier sewer bond issues, the City will minimize the additional amount of debt issuance needed
for this project.
Office of the City Manager
5555 Perimeter Drive • Dublin, OH 43017-1090
Phone: 614.410.4400 • Fax: 614.410.4490
Deer Run Sanitary Sewer – Group #1 Project Funding
Funding Amount Available
2020 Bonds - Deer Run Upsizing $3,000,000
2020 Bond Interest $32,934
2017 Bonds/Interest Remaining $5,030
2018 Bonds/Interest Remaining $343,206
2020 Bonds/Interest Remaining $624,116
2022 New Debt Issuance $1,000,000
Total Available for Project $5,005,286
Memo
Ordinance 03-22 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2022
February 8, 2022
Page 2
Budget Impact
• $5.0 million appropriated in Fund 623 for project construction;
• $1.0 million appropriated in Fund 620 for advance (if needed);
• $1.0 million appropriated in Fund 623 for repayment of advance to Fund 620 from bond proceeds
(if advance made).
Increasing Construction Costs on the Sewer Fund
As witnessed over time with the Deer Run Sanitary Sewer - Group #1 Project, construction cost
projections have increased from $2.7 million in the 2017-2021 CIP to the current bid of $5 million. This
increase and any additional increases in debt funded sewer construction projects approved in future years
in the 2022 – 2026 Capital Improvements Program will create additional upward pressure on sanitary
sewer rates.
Last August during the CIP process, staff reported to City Council that a 4.0% sewer rate increase would
be necessary each year during 2022 through 2026 to cover the increasing cost of sewer maintenance,
operations and debt service. Those calculations did not include the additional debt service costs
associated with this project. It is anticipated that issuing $1 million in additional debt for the Deer Run
Sanitary Sewer Project – Group #1 will add approximately $80,000 to the City’s annual debt service
payments in the Sewer Fund. Sanitary sewer rate increases will continue to be evaluated during the
upcoming 2023-2027 CIP review based on the increasing costs of sewer construction and debt service.
Recommendation
Staff recommends City Council approval of Ordinance 03-22, amending the Annual Appropriations for the
Fiscal Year Ending December 31, 2022, at the second reading and public hearing of the Ordinance on
February 28, 2022.