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Recommendation by Finance Director for approval of issuing 2026 General Obligation Notes to debt finance capital improvements and economic development activities
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Submitted by:
John Ruggini
Department:
Finance Director
Issue
As part of the 2026-2030 Capital Improvement Plan, bond proceeds are required to fund approved capital projects. As a result, it is necessary to authorize the issuance of these general obligation and water revenue bonds. It is important to consider the impact of these bonds on the City’s total debt capacity, tax and utility rates.
Background/Options
Capital Budget
The 2026-2030 Capital Improvement Budget included $10.8 million in general obligation note proceeds for approved projects as shown in Figure 1. The total amount to be borrowed is $15.4 million. This is a not-to-exceed amount although we don’t anticipate the amount to change.
Levy-backed bonds are $56,693 more than budgeted due to adding $350,000 for an Aerial Bucket Truck which the Council pre-approved and increasing the budget for Project 6626 – Fire Station 53 Concrete Pavement Replacement which cam in higher than budget. These are mostly offset by postponing or canceling the following projects:
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The Storm borrowing is $295,472 less than budgeted due also to better than budgeted contract figures for the 2026 paving program which also allowed for the complete elimination of 2026 water borrowing.
The acquisition of the Lineage warehouse using Tax Increment District 7 funds was not contemplated by the 2026 Budget but was approved subsequently by Council.
The bond amortization schedules have been adjusted so that the same impact on the 2027 Budget is maintained and sufficient funds are included in the 2027 Budget to cover the debt service associated with this bond offering. Within that issuance, the levy funded portion will be repaid over 15 years, the storm over 10 years and the TIF 7 over 14 years (the remaining life of the District). As was the case...
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