Alpharetta’s $3.3M energy plan would break even in 2045

Alpharetta’s proposed energy-upgrade package would replace 3,750 light fixtures and other aging equipment for $3.34 million. Staff calls it self-funding over 20 years—but the city’s cash-flow model does not turn positive until fiscal 2045.⁠[1]

City Council will discuss the proposal Oct. 19, with no vote requested. Staff wants direction before bringing forward a formal contract-award recommendation. The meeting begins at 6:30 p.m. in City Hall’s council chambers, 2 Park Plaza.⁠[1]

The proposed funding combines a $1.21 million city contribution, $182,803 in incentives and rebates, and $1.95 million in tax-exempt lease financing at an estimated 4.6% interest rate. Lease payments would run for 15 years; the proposed savings guarantee would run for 20.⁠[1]

The payoff is not just lower energy bills. The model combines approximately $3.32 million in energy-cost savings with $1.49 million in operations-and-maintenance savings. After accounting for project costs, incentives and $876,501 in financing interest, it projects $772,410 in net savings through fiscal 2047. Its cumulative balance remains $127,978 below zero in 2044 before reaching a $163,325 surplus in 2045.⁠[1]

Staff says McKinstry would reimburse the city if guaranteed savings fall short. Those are proposed protections, not demonstrated results: the reviewed materials do not establish a final contract, its savings-verification rules or approved financing terms.⁠[1]

Beyond LED lighting at 43 sites, the package includes seven heating-and-cooling units, 109 smart thermostats, weather sealing and window tint at 12 facilities, water-saving fixtures at 55 facilities and systems-efficiency work at five major facilities.⁠[1]

Staff also makes a practical labor argument. Since October 2025, city crews have replaced 133 light fixtures using more than 276 staff hours. Some City Hall fixtures require a motorized lift—not simply a ladder and a new bulb. The presentation anticipates additional savings from reducing maintenance and procurement workload.⁠[1]

The contract would address only part of a much larger replacement program. An assessment of 4,134 assets across 60 buildings and sites forecasts $11.8 million in replacement needs over years one through five. Its April 2025 baseline was updated in October 2026. That is not a finding that facilities are generally in poor condition: the average score, 3.02 on a five-point scale, means their condition is broadly as expected for their age.⁠[1]

Recreation, parks and cultural services account for 67% of those near-term replacement costs. Other needs would be handled through operating and capital budgets; the presentation lists $2 million for facility maintenance in fiscal 2027 and says athletic-field lighting is already being converted to LED across multiple parks.⁠[1]