Meeting Summary
The City Commissioners held a work session to discuss capital improvement projects and various funding options. Financial consultants presented on the legal requirements, tax implications, and project grouping strategies for General Obligation (GO) bonds and sales tax. The discussion focused on understanding the parameters for financing potential projects and the impact on taxpayers.
Financial Matters
General Obligation Bonds (Article 10 Section 27)
Discussion on GO bonds for public utilities, streets, roads, and bridges, requiring 70% project specificity and exclusive city ownership. These bonds are subject to Attorney General review.
General Obligation Limited Tax Bonds (Article 10 Section 35)
Discussion on GO bonds for economic and community development, which allows for broader project scope and use for non-city-owned property, with a 5 mil per year limit.
Sales Tax Funding
Overview of sales tax as a flexible funding option for general municipal purposes, capital improvements, and economic development, allowing for general or specific allocation.
Refinancing existing debt and short-term capital projects
Consideration of utilizing $750,000 in annual debt service freed up from a paid-off bank note. Options include financing an additional $6 million over 20 years or approximately $7 million over 10 years for short-term capital projects like the Expo parking lot and library roof, potentially through a $3 million bond for 3-5 years.
Coming Up
Deadlines
- February election voting day (approval of election documents by December 8th, draft documents by November 1st/5th)
Watch For
- Further conversations about Expo and other capital projects
- Submission of an Excel sheet detailing projects with timelines and funding requirements from the committee
Agenda Summary
Work session discussion of capital Improvement projects and funding options
Discussion with financial consultants regarding the legal requirements, tax implications, and grouping strategies for General Obligation bonds (Article 10 Section 27 and Section 35) and sales tax to fund capital improvement projects. This included details on project specificity, ownership requirements, millage rates, and interest rate considerations.