HomeMy WebLinkAboutA032 - Hearing on proposal to enter into an Essential Purpose Loan Agreement and General Purpose Loan Agreement:ITEM #:26
DATE:03-25-25
DEPT:FIN
SUBJECT:PUBLIC HEARING AND NOTICE OF INTENT TO ISSUE $13,500,000
ESSENTIAL CORPORATE PURPOSE GENERAL OBLIGATION BONDS,
$235,000 GENERAL CORPORATE PURPOSE GENERAL OBLIGATION
BONDS AND ASSOCIATED TAX LEVY FOR DEBT PURPOSE
COUNCIL ACTION FORM
BACKGROUND:
The Fiscal Year (FY) 2025/26 Budget includes several capital improvements funded through General
Obligation (G.O.) Bonds. A public hearing is required to authorize the issuance of these bonds and the
associated property tax levy necessary for debt repayment. The proposed bond amounts and
corresponding property tax levy are incorporated into the FY 2025/26 budget.
The G.O. Bonds and related debt service levy outlined in the FY 2025/26 budget are based on the
projects listed in the table below. Formal approval from the City Council will be required at a later date
to authorize the bond sale, which is anticipated to occur shortly after the start of the new fiscal year.
In addition to the $13,610,195 allocated for G.O. Bond-funded capital projects, the issuance
authorization includes an additional allowance of up to $124,805 to cover issuance costs and provide
flexibility for selling bonds at a premium above their face value. However, the total debt issued will not
exceed the amount required to support the property tax levy included in the proposed budget.
The public hearings and pre-levy resolutions are necessary to establish the property tax levy for debt
service on bonds expected to be issued as part of the FY 2025/26 budget. The pre-levy amount of
$1,543,962 is included within the total debt service property tax levy of $12,180,953 for all outstanding
G.O. debt.
Additionally, the recommended FY 2025/26 budget includes $880,000 in revenue-abated G.O. Bonds to
support land acquisition and engineering/design for the new Resource Recovery and Recycling Campus.
Given that the project remains in its early development stages, staff recommends deferring the
authorization process for the bond issuance for this project until the project's financial requirements are
more clearly defined.
The Capital Improvement Plan for FY 2025/26 includes the following G.O. Bond-funded projects:
Fire Station Alerting System (General Corporate
Purpose)$ 211,905
Asphalt Street Pavement Improvements 4,000,000
Concrete Pavement Improvements 3,800,000
Seal Coat Street Pavement Improvements 1,000,000
Collector Street Pavement Improvements 500,000
Alley Pavement Improvements 400,000
Downtown Street Pavement Improvements 250,000
Traffic System Capacity Improvements 1,520,000
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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. Authorize the issuance of Essential Corporate Purpose General Obligation Bonds in an amount
not to exceed $13,500,000, authorize the issuance of General Purpose General Obligation Bonds
in an amount not to exceed $235,000, and authorize the associated tax levy for repayment.
2. Do not authorize the issuance of Essential and General Corporate Purpose General Obligation
Bonds for the projects noted above. This alternative will prevent the City from completing the
bond-funded projects reflected in the FY 2025/26 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 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.
ATTACHMENT(S):
FY 2025-26 GO Bond List.pdf
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FY 2025/26 CIP GO Bonds
FY 2025/26 General Corporate Purpose:
Fire Station Alerting System 211,905
Issuance Costs 23,095
Total 235,000
FY 2025/26 Essential Corporate Purpose:
Asphalt Street Pavement Improvements 4,000,000
Concrete Pavement Improvements 3,800,000
Seal Coat Street Pavement Improvements 1,000,000
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
Issuance Costs 101,710
Total 13,500,000
Total Not to Exceed 13,735,000
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