City finance staff briefed the Agenda Review Committee on proposed actions to manage multiple municipal debts coming due this year, including an LTGO refunding and a refinancing package that would extend maturities for several existing capital projects.

Matt (city finance) described plans to pay off a roughly $1.6 million principal balance for the golf fund debt using golf fund reserves and to refinance several balloon payments. He said the total refinancing package for balloon payments covers $6,661,000 and listed projects included in that group: Esmeralda Golf Course improvements; the Gardner property (police investigative services); Alki property (police evidence room); West Plains fire station construction; CHAS East Central Dental Clinic acquisition/construction; and the Division Corridor/University District revitalization area.

Staff also proposed amending the city investment policy to increase the allowable share of net cash that can be loaned to city departments or outside agencies from 15% to 20%. Matt said the city's charter section 85 prevents issuing councilmatic LTGO bonds without voter approval and that changing the charter would be a policy decision for the council. Council members discussed the risk of increasing internal loan caps, the balloon-payment structure (periodic five-year increments and refinancing strategy), and the trade-offs of pursuing a charter amendment to allow broader direct borrowing without voter approval.

Committee members had questions about comparative municipal practices, the planning and refinancing timeline, and the risks of overextending debt. Staff said the proposed approach follows longstanding practice of structuring multi-decade capital financing with five-year increments and planned refinancing of balloon balances as they come due.