HomeMy WebLinkAboutA012 - Resolution setting the date for Public Hearings on proposals to enter into a General Obligation Loan Agreements and to borrow money thereunderITEM #:14
DATE:03-11-25
DEPT:FIN
SUBJECT:
RESOLUTION SETTING THE DATE FOR PUBLIC HEARING AND
ADDITIONAL ACTION ON PROPOSAL TO ENTER INTO A GENERAL
OBLIGATION LOAN AGREEMENT AND TO BORROW MONEY
THEREUNDER
COUNCIL ACTION FORM
BACKGROUND:
The FY 2025/26 Budget includes several General Obligation (G.O.) Bond-funded capital
improvements. A public hearing is required to authorize issuance of bonds and the levy of property
taxes for debt to be issued. The dollar amounts and corresponding property tax levy for the planned
G.O. bond issue is included as part of the FY 2025/26 budget.
The G.O. Bonds and debt service levy for the FY 2025/26 budget are based on projects listed in the
table below. Council authorization will be required at a later date to approve the sale of the bonds.
Bonds are expected to be issued shortly after the start of the new fiscal year.
Please note that in addition to the amount to fund the $13,610,195 in G.O. Bond-funded capital
projects, the not-to-exceed amount for the issuance includes a $124,805 additional authorization
to allow for issuance costs and the option to sell our bonds at a premium over the par or face
value of bonds. In any case, debt will not be issued in an amount where debt service exceeds the
property tax levy included in the proposed budget.
The public hearings and pre-levy resolution will be required at the time of the budget approval to levy
property taxes for the bonds not yet issued. The pre-levy amount is included as part of the total debt
service property tax levy for the FY 2025/26 projects and is $1,543,962 of the total taxes levied for debt
service at $12,180,953 for all outstanding G.O. debt.
It also should be noted that the recommended FY 2025/26 budget also included $880,000 of revenue
abated G.O. Bonds as a funding source for the land acquisition and engineering/design of the new
Resource Recovery and Recycling Campus. Given that the project is in the early stages of
development, staff believes the most prudent course of action is to undertake the authorization
process once the project's financial requirements are more thoroughly understood.
The Capital Improvement Plan 2025/26 G.O. Bond issuance includes the following:
Fire Station Alerting System (General Corporate
Purpose)$ 211,905
Asphalt Street Pavement Improvements 4,000,000
Concrete Pavement Improvements 3,800,000
Seal Coat Street Pavement Improvements 1,000,000
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Collector Street Pavement Improvements 500,000
Alley Pavement Improvements 400,000
Downtown Street Pavement Improvements 250,000
Traffic System Capacity Improvements 1,520,000
Intelligent Transportation System 367,540
Airport Airside Improvements 531,750
Airport Facility Improvements 329,000
Ada Hayden Heritage Park 700,000
Subtotal Tax Supported Bonds $ 13,610,195
Estimated Issuance Costs 124,805
Grand Total 2025/26 G.O. Bond Issuance $ 13,735,000
ALTERNATIVES:
1. Set March 25, 2025, as the date of public hearing to authorize the issuance of Essential Corporate
Purpose General Obligation Bonds in an amount not to exceed $13,500,000 and a second hearing
to authorize the issuance of General Corporate Purpose General Obligation Bonds in an amount
not to exceed $235,000.
After the hearings, the City Council can authorize the sale and associated pre-levy resolution at a
time of the City's choosing (typically in the Fall).
2. Reject or delay the public hearings, reduce the FY 2025/26 property tax levy, and delay the
capital projects. Rejection of the Bonds will prevent the City from completing the bond-funded
projects reflected in the CIP.
CITY MANAGER'S RECOMMENDED ACTION:
Prior to the issuance of debt, state law requires that a public hearing be held and associated pre-
levy resolution be adopted. This is a required step in order to accomplish the City Council’s
approved capital improvements for the upcoming fiscal year. Therefore, it is the recommendation of
the City Manager that the City Council adopt Alternative No. 1, as described above.
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