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Council approves authorization to sell up to $38 million in bonds to fund capital projects
Summary
Council adopted a resolution authorizing the city manager to sell up to $38 million in new bonds (and to seek authorization for up to an additional $25 million contingent issuance) to finance capital projects included in the CIP; staff said proceeds will reimburse incurred project expenses and conform to IRS arbitrage rules.
Chrissy Hamill, the city budget director, asked Council to authorize the city manager to sell up to $38 million in new bonds and to permit up to $25 million in contingent issuance as staff monitors market conditions. Hamill said all proposed bond sales were previously included in the Capital Improvement Plan and that the city sells bonds on a cash-needed basis so proceeds reimburse projects already started or will be spent within 24 months to comply with IRS rules preventing arbitrage.
Hamill told council staff had met with S&P and planned a Moody's call, and staff did not anticipate losing the city's triple-A rating. A councilor noted that the authorization represents significant investment in schools and transportation; the council voted to adopt the resolution by voice vote, and staff recorded the motion as passing 4–0.
No additional project-specific authorizations or appropriations were made at the meeting; the resolution granted the city manager the authority to proceed with bond sales within the approved parameters and to allocate proceeds to projects previously approved in the CIP per staff discretion and IRS timing constraints.
