CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Pass an ordinance authorizing the issuance of General Obligation Bonds for an amount not to exceed $40,500,000 and amending the 2020 Budget (Item 1 of 2)
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The other item on the City Council agenda related to this item is:
* 20-1132
The original proposal for the 2020-2024 Capital Improvement Program (CIP) had a total of $35.32 million in projects without dedicated funding sources. Through program review and project coordination efforts, staff reduced the recommended capital program by $10.17 million. Staff's recommendation to the City Council included $25.15 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 it by an incremental $0.56 million. Additionally, the City Council authorized the usage of $8.4 million in Home Rule Sales Tax to fund capital expenditures. At the December 3, 2019 City Council meeting, the 2020 Budget was approved with $13.50 million in projected borrowing for capital expenditures.
At its May 5, 2020 meeting, in response to COVID-19, the City Council passed Ordinance 20-045 which reduced the 2020 Budget by $24.97 million via the deferral of several capital projects. $4.70 million of the $24.97 million was related to projects without a dedicated funding source. Furthermore, $491,000 was related to projects funded via the Home Rule Sales Tax.
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 cash flow and reduce the amount of additional interest costs incurred.
To use this methodology, the City was required to pa...
Click here for full text