HomeMy WebLinkAboutA016 - Council Action Form dated June 8, 2021 ITEM # 9 31
DATE: 6-26-24
06-08-21
COUNCIL ACTION FORM
SUBJECT: SETTING DATE OF PUBLIC HEARING TO AUTHORIZE ADDITIONAL
USES FOR GENERAL OBLIGATION BONDS SERIES 2017 AND SERIES
2018A TO FUND EXTENSION OF UTILITIES TO THE EAST INDUSTRIAL
AREA
BACKGROUND:
In 2017 and 2018 the City issued general obligation bonds to fund capital improvements.
The public hearings for these bond issues included the planned capital uses which
consisted of street improvements, the city-wide radio system, and improvements to Fire
Station 1.
The projects funded by these bonds are now completed or under contract. Bond proceeds
remain available since actual costs have been lower than estimated. Options for use of
the remaining bond proceeds include closing to the debt service fund to make future debt
service payments or use of other essential corporate purpose qualified capital projects.
The extension of water and sanitary sewer utilities qualifies is an essential corporate
purpose use but was not included in the proceedings when the 2017 and 2018 bonds were
issued. A public hearing and Council resolution is required to authorize the additional uses
of the 2017 and 2018 bond proceeds to fund the extension of utilities. The additional uses
will have no impact on the debt service costs to the City since the bonds have already
been issued and the repayment schedule is in place. The amounts to be authorized for
additional use are $150,000 for Series 2017 and $625,000 for Series 2018A. These are
not to exceed amounts and only the actual additional amounts needed to fund projects will
be used.
ALTERNATIVES:
1. Set June 8, 2021 as the date of public hearing to consider including water and
sanitary sewer utility capital improvements as additional authorized uses for
General Obligation Bond issues Series 2017 in amount not to exceed $150,000 and
Series 2018A in amount not to exceed $625,000.
2. Direct staff to identify another authorized use for these bond proceeds and present
other alternatives for funding the extension of utilities to the East Industrial Area.
CITY MANAGER'S RECOMMENDED ACTION:
City staff has identified remaining bond proceeds from debt issuance in 2017 and 2018 as
the best alternative to provide additional available funding to complete the extension of
utilities to the East Industrial Area, only to be used depending on bid results. A public
hearing and Council resolution is required to authorize the use of the bond proceeds for
the project. Therefore, it is the recommendation of the City Manager that the City
Council adopt Alternative No. 1, as described above.