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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:
Project
Project Title
Budget
Comment
2402
Construct Fiber Optic Connections between Critical City Facilities
332,500
Sufficient cash from prior projects
2403
Street Light Conversion
1,800
Will use cash for small amount
6627
Fire Station 51 North Parking Lot Replacement
8,000
Consolidated with project 6626
6690-6699
Utility Vehicle Replacement
60,000
Surplus available from Fire truck purchase -
8055
Hart Park Picnic Pavilion
125,000
Project postponed due to flood
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 ...
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