PUBLIC INFRASTRUCTURE
BOND DISCUSSION
C I T Y C O U N C I L
J U N E 1 1 , 2 0 2 4
FUNDING PUBLIC IMPROVEMENTS
High Project Costs
• Immediate Expense Would Greatly Impact the City’s General Fund • Seek Financial Vehicles for Long Term Investment
Municipal
Bonds
General Obligation Bonds
• “Ad Valorem” Tax
• Specific Purpose, Amount, Tax
Impact
• Based on Value of Parcels in the City
• Voter Approval Required
Lease Revenue Bonds
• Specific, Dedicated Revenue Stream
• Debt Service Typically Becomes Ongoing
General Fund Expense
• No Voter Approval Required
VOTER THRESHOLD
Current Law
• General Obligation Bonds Require 2/3 Vote of the People ACA
Proposed Constitutional Amendment 1
November General Election
Lower Voter Threshold to 55% for Construction, Reconstruction, Rehabilitation, or Replacement of Public Infrastructure and Other Items
Includes Open Space
Includes Enhanced Accountability Measures
FACILITIES COST ANALYSIS
Examined Key City Facilities
• City Hall
• Police Headquarters and Annex
• Public Works Yard
• Fire Stations 1 and 2
• City Hall
TIMELINE
Prior to August 6th
Must Determine
• If Bond is Desired
• Public Facilities to Include
• Total Amount of Bond Issuance
Council to Approve
• Resolution of Public Necessity (2/3 Vote of Council)
• Ordinance Ordering Submission of General Obligation
Bond to the Public
⚬ Requires 2 Readings, Takes Effect Immediately
• Resolution Placing the Bond Measure on the Ballot and Requesting Consolidation with the Statewide General
Election
Following August 6th
Staff to Engage
• Municipal Advisor
⚬ Determine Schedule, Provide Additional Advice Related to Bond Issuance
• Bond Counsel
⚬ Issue legal opinion that City has met all legal and
procedural requirements
• Underwriter
⚬ Help City to Structure, Price, and Facilitate the Sale of Bond Issuance
TIMELINE
COUNCIL DIRECTION
• Initiate Preparation of Bond Measure
• Determine the Amount and Proposed Bond Usage
• Engage Outside Advisors
⚬ Municipal Advisor
⚬ Bond Counsel
⚬ Underwriter
⚬ Survey Research, etc.
PUBLIC INFRASTRUCTURE
BOND DISCUSSION
C I T Y C O U N C I L
J U N E 1 1 , 2 0 2 4