Committee approves 2024 exceptions and advance repayment of 2014 bonds; both measures move to full council

The Select Budget Committee recommended passage of two budget-related council bills on June 5: council bill 120979, a 2024 exceptions ordinance (amending ordinance 126955), and council bill 120988, authorizing early repayment of certain 2014 bonds (amending ordinance 127156). Both bills passed committee by unanimous voice/roll-call votes and will be transmitted to the June 10 full City Council meeting for final action.

Council bill 120979 — 2024 exceptions ordinance (recommended passage): - Motion: Chair Dan Strauss moved committee recommendation of council bill 120979; second by Council member Rivera. - What it does: Adds two year-end technical adjustments to the 2024 adopted budget (Ordinance 126955): a $1,100,000 increase to the industrial insurance fund (worker’s compensation/pensionable claims) and a $658,000 increase to the general fund allocation for the Law Department to cover timing and unanticipated costs (including criminal case management system timing, law intern costs, and salary budget mismatches tied to Workday implementation). - Reason: The industrial insurance adjustment reflects pensionable claims that require retirement funding for affected employees. The Law Department adjustment was described as a technical mismatch tied to multi‑year projects and timing; the city attorney’s office and CBO said they will improve monitoring to avoid recurrence. - Vote: Committee roll-call recorded unanimous support (8–0); all present members voted in favor. The bill requires a three‑quarters vote for budget amendment; the committee’s recommendation met the required threshold. - Outcome: Recommended passage; bill to be transmitted to the June 10 City Council meeting.

Council bill 120988 — Advance repayment of 2014 bonds (recommended passage): - Motion: Chair Strauss moved the recommendation; a second was recorded and the committee proceeded to vote. - What it does: Authorizes the city to redeem certain outstanding 2014 bonds early using available interest earnings and reserve funds that are unprogrammed for other uses. Staff said roughly $3.5 million in bond principal across the outstanding issue could be redeemed using about $1.9 million in interest earnings, $1.3 million in unrestricted reserve-like funds, and approximately $300,000 from REIT 1 capital funds that were not otherwise programmed. - Financial effect: Staff estimated nominal interest savings of roughly $675,000 through 2034 and avoided future interest payments of about $75,000 in the near term; redemption would retire bonds that otherwise matured in 2034. - Vote: Committee roll-call recorded unanimous support (8–0). - Outcome: Recommended passage; bill to be transmitted to the June 10 City Council meeting.

Ending: Committee Chair Strauss and staff characterized both measures as technical and fiscally prudent; committee members noted the exceptions ordinance reflects an improving trend in exception volume and that the bond redemption will reduce future interest expense.