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 2023-2027 Capital Improvement Program (CIP). The proposed 2023 CIP included $34,460,000 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, technology, and utility infrastructure.
On December 6, 2022, the City Council approved the 2023 Budget and affirmed the plan to issue bonds for these unfunded capital projects, as needed.
Since 2018, the City has issued debt on a reimbursement basis. Through the practice of borrowing for capital projects on a reimbursement basis, the City avoids over-borrowing in any one year. By waiting until late in the fiscal year, or even early the following year, staff has an appropriate amount of data to analyze and project actual spending on capital projects that require debt issuance.
In January, staff seeks approval from the City Council to establish the Official Intent of Reimbursement Resolution to provide authorization to reimburse the City for all capital projects planned for the budget year. Once borrowing needs are defined, staff works with the City's bond advisor to initiate a bond sale under a timeline that meets the parameters of this reimbursement resolution. An authorizing ordinance is brought to the City Council before any bonds are issued.
DISCUSSION:
The 2023 Budget approved by City Council authorized staff to spend dollars associated with capital projects starting January 1, 2023. Additionally, as part of the same budget approval, Council tentatively authorized staff to pursue issuing bonds for the payment of all unfunded capi...
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