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Officials warn bond authorization needed in fall; aldermen press for taxpayer impact details
Summary
City staff told the joint committee that a bond authorization will likely be required this fall to fund the remainder of design work, prompting aldermen to press for how the sale of debt will affect taxpayers and the tax rate. Director Cummings said a modest annual debt target guides bonding decisions.
City staff told the joint committee that the project will need a fall bond authorization to fund remaining design work and keep the schedule on track. Director Tim Cummings said he expects to request bond approval in September for design funds and suggested a construction bond a year later to keep the project on schedule.
Alderman Johnson repeatedly asked how bond sales would affect taxpayers and whether the city would issue debt in increments. Cummings clarified that the city strives to sell roughly $25 million of debt per year to maintain expected tax rates and that selling debt is distinct from authorizing a bond. "It's not authorizing of a bond, but it's selling of debt... I would recommend ... we should really try to sell only about $25,000,000 worth of debt year over year to ensure that we're keeping a tax rate in and around what we're expecting," Cummings said.
Committee members asked staff to prepare a breakdown showing what bond amounts might be requested, how they would be phased, and the expected impact on the tax rate for future presentation to the committee and the public.
