Council reallocates $2.8M in bond interest to six projects, approves CIP adjustments
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Summary
Council approved using about $2.8 million in interest earnings from a 2019 bond issuance to replace other funding sources for six capital projects; staff said overall project budgets are unchanged and the interest offsets prior general‑fund contributions.
City staff told Scottsdale City Council that interest earnings from the city’s February 2019 bond issuance totaled about $2.8 million, and recommended allocating those earnings to six projects identified in the council report rather than increasing overall budgets.
At the Sept. 8 Citizens Bond Oversight Council meeting staff recommended that council approve the use of those interest earnings for six listed projects; staff said the reallocation replaces existing funding sources and does not increase total project budgets. The city treasurer explained that the city bundles projects to meet IRS rules requiring bond proceeds be spent within three years and that interest earnings can result when construction timing and high interest rates delay spending.
Councilmembers asked detailed questions about whether bonds were sold too early, the status of individual projects (including the police/fire training facility close‑out), and where freed‑up general fund dollars would be applied. Staff explained that freed general‑fund dollars go into a general‑fund construction pool for other general‑fund capital projects.
Council moved and approved the CIP budget adjustments and the use of bond interest as recommended; a separate motion was passed to direct staff to investigate the citizens’ petition presented earlier and prepare a written response.
