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Item No. 20 <br />memorandum <br />TO: Mayor & City Council <br />FROM: John Godwin, City Manager <br />SUBJECT: DEBT SERVICE & BOND ISSUANCE <br />DATE: August 15, 2016 <br />BACKGROUND: From time to time we have discussed the need to fund significant street <br />reconstruction, the cost of which would necessitate the sale of general obligation bonds. GO <br />bonds of course may only be sold following an election in which voters approve the sale and a <br />property tax rate increase to pay for it. <br />STATUS OF ISSUE: At this time, a once cent increase would generate approximately $2.2 <br />million in bond proceeds. Approximately $60 million in street reconstruction needs have been <br />identified and included in the 10 -year Capital Improvements Program. This is obviously far too <br />large of a number to take on at once, but the longer we wait, the larger than number will get. An <br />election may be held only in November and May each year; November of this year may be too <br />soon. <br />BUDGET: Funding of street reconstruction would come from voter - approved GO bond <br />proceeds. <br />RECOMMENDATION: Discussion only. <br />