Alpharetta’s $3.3M upgrade plan puts break-even in 2045

Alpharetta staff recommends a $3.34 million package of building upgrades it describes as “self-funding” over 20 years. But the city’s financing model has a longer wait behind its annual savings: the cumulative balance would not turn positive until fiscal 2045.⁠[1]

The proposal accompanies a facility-assessment discussion scheduled for City Council on Oct. 19. The agenda lists a work-session update—not an approval of the contract or financing.⁠[2]

The proposed work includes LED upgrades to 3,750 fixtures across 43 sites, 109 smart thermostats across 28 facilities, seven heating-and-cooling replacements at six facilities, and water-saving fixtures at 55 facilities.⁠[1]

The funding plan combines about $1.21 million from the city, $1.95 million in tax-exempt lease financing and $182,803 in incentives and rebates. It assumes a 4.6% interest rate; the model includes $876,501 in financing interest.⁠[1]

The distinction is between covering yearly payments and earning back the upfront investment. For fiscal 2028, the table combines $121,771 in energy-cost savings with $54,473 in operations-and-maintenance savings. Against a $146,148 financing payment, that leaves about $30,095. The model shows roughly that annual surplus through the 15-year repayment period, but the cumulative balance remains negative through fiscal 2044. It projects $772,410 in total net savings by fiscal 2047.⁠[1]

This is only part of the repair picture. The assessment identifies $11.8 million in replacement needs for years one through five. The energy package favors measures with faster paybacks, such as lighting, water fixtures and thermostats; staff says annual operating and capital budgets would address the remaining needs.⁠[1]

Staff argues the benefits would extend beyond the modeled savings, including less procurement work and fewer maintenance demands. Its presentation says crews spent more than 276 hours replacing 133 light fixtures since October 2025. Some City Hall fixtures require a motorized lift, and many repairs involved more than changing a bulb. Those additional benefits are staff expectations, not measured savings from the proposed package.⁠[1]

The presentation says McKinstry would guarantee savings, but these materials do not establish contract approval or final financing terms. Council’s discussion begins at 6:30 p.m. Oct. 19 in the City Hall council chambers, 2 Park Plaza.⁠[1][2]