CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass an Ordinance authorizing a delegated sale of General Obligation (G.O.) Bonds for an amount not to exceed $7,500,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The original proposal for the 2018-2022 Capital Improvement Program (CIP) had a total of $26.23 million in projects without dedicated funding sources. Through program review and project coordination efforts, staff reduced the recommended capital program by $10.07 million. Staff recommendation to City Council included $16.16 million of projects without dedicated funding sources at a series of workshops. Over the course of the workshops, City Council made several modifications to the capital program that reduced the capital program by an incremental $0.56 million. Additionally, City Council authorized the usage of $8.4 million in home rule sales tax to be used to fund capital expenditures. At the December 5, 2017 City Council meeting, the 2018 Budget was approved with $7.13 million in projected borrowing for capital expenditures.
In 2017, staff modified the borrowing methodology to issue debt in the third quarter of each year. This change allowed staff to analyze capital project spending and make any adjustments to the required borrowing amounts. This practice also allows staff to better manage cashflow and reduce the amount of additional interest costs incurred.
To use this methodology, the City was required to pass an Official Intent for Reimbursement resolution regarding the Capital Projects. This allowed all projects approved through the 2018 budget to be included in any future bond sale. However, the resolution did not provide the authorization to borrow, it only reserved the ability to fund current projects with a future G.O. bond sale. On January 16, 2018, the City Council adopted this resolution.
DISCUSSION:
Staff is seeking a not to exceed value of $7.50 mill...
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