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