Council reviews ordinance to issue notes to refinance bonds and fund projects; staff says $1.8 million will fund construction

City finance staff presented an ordinance authorizing the issuance of one or more federally taxable and/or tax-exempt general-obligation notes to refinance the city's outstanding 2015 series C bonds, refund a portion of the 2020 series A bonds and fund capital projects, equipment and facility improvements.

A council member asked whether the ordinance's sections provide specific uses for sections 3, 4 and 5. The Chair said the ordinance language is intentionally broad to give the administration flexibility as project needs change and invited staff (Lou and Brian) to answer questions. A finance staff member said the restructuring aims to minimize any extension of the debt schedule while providing near-term debt service relief and $1.8 million in new funds for projects.

The finance staff explained that the proposed plan "is only 1 year" in extension, moving certain payoffs to 2038 rather than 2039, and that the important goal was to maintain a roughly $7.5 million annual debt-service run rate. "You're getting the additional funds; we're keeping the run rate of 7 and a half million in the budget," the staff member said. When asked whether debt service would have dropped otherwise, the staff said it would have dropped slightly (an example range given was from about $7.05 million to $7.01 million) and the restructuring fills that gap.

On timing, the finance staff said "1.8 is what we will fund into a construction fund" and that money is scheduled to be available on or about June 30. The transcript does not record a formal vote on the ordinance during the discussion.

The ordinance was presented and discussed; the council did not record a final vote in the provided transcript.