City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 20, 2023
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Annual Public Financing Report
RECOMMENDATION
It is recommended that your Council and Board Accept the 2023 Annual Public Financing Authority Report.
BACKGROUND
The Authority is in place to facilitate and oversee the issuance of bonds and other financing instruments like Tax Allocation Notes, Private Placement Borrowings, and lease purchases.
It is required for the Public Finance Authority Board (PFAB), which is comprised of the City Council as Agency Board Members, to be presented an Annual Report.
REVIEW AND ANALYSIS
The following summary illustrates the City debt and the Gonzales Successor Agency debt as of June 30, 2023:
CITY DEBT Current Amount Original Amount
Solar Lease #1 $867,220.09 $2,697,589.00
Solar Lease #2 1,011,630.02 1,679,188.88
Water / Sewer Loan 545,793.33 3,097,025.55
Pool Loan 920,511.00 1,575,000.00
Total $3,345,154.44 $9,048,803.43
AGENDA
ITEM
13 SUCCESSOR AGENCY DEBT
2015 TARB 4,978,981.00 8,206,400.00
2016 TARB 3,681,000.00 5,106,000.00
Total $8,659,981.00 $13,812,400.00
The Fiscal Year 2023-2024 City and Agency Approved Budgets include sufficient resources to honor the debt service obligations. These resources are included in the General Fund, Gonzales Successor Agency Fund (Fund 426), the Water Enterprise Fund (Fund 520), the Sewer Enterprise Fund (Fund 530), and the Solar Project Fund (Fund 550).
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: The Annual PFAB Report, while somewhat of a ministerial action, is a significant financial item presented to your Council and Board for review. It supports the Vision, because it provides information on the outstanding debt of the City and Agency necessary to make sure that resources are being allocated prudently.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ___No ___ NA
Explain: The various debt vehicles used and held by the City and Agency, are important because they allow the construction infrastructure and public improvements necessary to enhance the quality of life. For example, (a) the RDA debt was used to improve the downtown, to develop the Gonzales Agriculture Industrial Business Park, build the new Police Station, share in the cost of the Joint-Use Gymnasium with the School District, and seed the business loan program and lowmoderate housing rehabilitation loan program; (b) the 2005 Private Placement was used to expand the sewer plant and construct the two 3 million-gallon water storage tanks; and (c) the lease financing has been utilized for the City’s solar projects and the rehabilitation of the Gonzales Community Pool.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. ___ Yes ___No X NA Explain: This Report strives to be straightforward and provide the information in an easy-tounderstand manner.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: Please see above.
ALTERNATIVES
Alternatives include not providing the Report, which is not recommended and/or changing the format of the Report.
BUDGET IMPACT
There are no financial impacts as a result of this item.
CONCLUSION
It is recommended that your Council and Board accept the 2023 Annual Public Financing Authority Report.