Committee approves deauthorization of unused bond allocations; OMB to provide written explanation

The Budget, Finance and Governance Committee voted to amend bond ordinances to deauthorize previously authorized but unissued debt, a routine administrative step the administration said will restore borrowing capacity for future capital projects.

An OMB representative explained to the committee that when the city authorizes debt it sometimes includes contingency allocations that are not ultimately borrowed. ‘‘We asked to borrow money that we didn't use. And we're basically asking to be able to move that borrowed money around to other places as needed,’’ the OMB representative said. The representative added that the items on the list are amounts the council previously authorized but the city never issued as bonds.

Members pressed for limits on how deauthorized amounts can be used. OMB told the committee that any re-use must meet the statutory definition of a project with an appropriate useful life under the Local Finance Law and that these amounts are intended for capital and construction projects, not operating expenses. Committee members requested a written explanation of the process and the current authorized-but-unissued list. One member asked for clarity because the amounts date back across fiscal years; staff confirmed that once deauthorized the allocations lose their original project identity and re-enter the debt authorization plan tied to fiscal year debt limits.

The committee approved the introductory legislation. Staff said they would provide a written explanation and a report showing the debt authorization plan and the outstanding authorized-but-unissued amounts for committee review.