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Financial impact of delayed reimbursements and DDC's alternative delivery approval
1:04:22
·
80 sec
Library representatives discuss the financial impacts of delayed city reimbursements and recent developments with DDC's project delivery methods.
- Linda Johnson highlights that delayed reimbursements force libraries to use lines of credit, incurring interest charges.
- The additional finance charges reduce the effective funding available for capital work.
- Dennis Walcott mentions DDC's recent alternative delivery approval from the state.
- Libraries look forward to working with DDC on this new method to improve efficiency and cost-effectiveness.
- Delayed projects become more expensive, leading to increased shortfalls and potential project stoppages.
Linda Johnson
1:04:22
I'll just pile on here because why not?
1:04:26
You know, my team that works on capital projects and and maintenance knows that the thing that really sticks in my craw is that even when we are doing projects ourselves, it takes so much time for the city to reimburse us that we actually have a line of credit.
1:04:46
We pay interest so that we can pay our vendors to keep projects moving forward.
1:04:51
So the money that we're getting is actually not paying entirely for the capital work that's being done.
1:05:00
We're also having to pay a finance charge because doing business with the city is that arduous.
Dennis Walcott
1:05:06
And as you know, DDC just got an alternative delivery approval from the state.
1:05:12
So we look forward to working with DDC around this alternative delivery method of building because we want DDC to be the most efficient, cost effective organization there is.
1:05:24
I mean, we look forward to that and we've had projects that have been done on time.
1:05:29
We've had projects that have been delayed, but the reality is then as projects get more delayed, they become more expensive.
1:05:37
Therefore, the shortfalls increase, then we have to stop the projects, and that's unacceptable.