CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the resolution of Official Intent for Reimbursement of Capital Projects
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
As part of the annual budget process, the City Council reviewed the proposed 2022-2026 Capital Improvement Program (CIP) over the course of three budget workshops. The proposed 2022 CIP included $21,202,000 in capital projects without an identifiable funding source. The proposed budget contemplated the issuance of general obligation bonds to fund various capital projects, including investment in roads, bridges, and water utility infrastructure.
A total of $10,000,000 is to fund water infrastructure improvements, as a part of the expanded capital program approved in conjunction with the 2021 rate study. This expanded program allows for an additional 3.2 miles of water main replacement per year, as well as support for other various water/wastewater infrastructure projects. An additional $7,428,000 is to fund improvements to right-of-way infrastructure, including road, bridge, and sidewalk improvements.
The budget also contemplates the issuance of bonds for the 2022 phase of the downtown streetscape project. This project, originally scheduled for 2020, was deferred due to the COVID-19 pandemic. Construction is now scheduled to begin in 2022 with the reconstruction of the streetscape along portions of Jefferson Avenue, Main Street, and Jackson Avenue.
The City would borrow an estimated $3,774,000 for the project construction. Of that amount, the City will fund 60% of the resulting debt service, with the other 40% being paid by the adjacent property owners through taxes levied in Special Service Area (SSA) 30 and SSA 34 (if approved).
On December 7, 2021, the City Council approved the 2022 Budget and affirmed the plan to issue bonds for these unfunded capital projects, as needed.
DISCUSSION:
The 2022 Bud...
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