Sewall's Point staff warn of spring cash‑flow pinch; line of credit may be needed

Finance staff presented an updated cash‑flow forecast for the town’s capital program and warned commissioners that March through May 2026 look tight under current payment and reimbursement schedules. Financial staff noted the town has not yet used its line of credit but may need it if reimbursements arrive more slowly than projected.

"As of December, we're fine. In January, we're fine. February, we're fine. March 2026 is where we're going to fill a pinch," the finance presentation said, projecting timing through July and noting that payments for several projects will likely be issued by June.

Staff highlighted recent and expected grant reimbursements as the main variable. The presentation recorded a $452,000 HMGP phase‑1 reimbursement already received and an $1,100,000 HMGP payment expected soon; staff said those receipts would materially ease the shortfalls if they arrive on the projected schedule. Officials also said typical reimbursements take 40–60 days depending on whether they come from the Florida Department of Environmental Protection (DEP) or FEMA’s Hazard Mitigation Grant Program (HMGP), and HMGP has been slower than DEP on average.

Commissioners asked whether loan repayments and grant approvals were confirmed. Staff said the town’s general‑fund loan (initially $1.5 million, later increased by $1.0 million) is scheduled to show repayment in July 2026 and that most grants shown in the spreadsheet have been approved, while some other grants remain in the pipeline.

The presentation recommended transparency on months that may require drawing on reserves or the line of credit and proposed transferring $419,000 of ad valorem funds for capital in January to help cash flow. The commission did not take formal action on borrowing at the special meeting; staff said they would return with contracts and, if needed, formal borrowing requests at a later meeting.