Title
Discussion of issues relating to a possible General Obligation Bond Election on May 1, 2021.
Body
Summary:
At the September 15, 2020 Council Workshop, City staff outlined some potential propositions for possible inclusion in a General Obligation (GO) Bond election. This was the result of staff efforts during the past year in addressing various strategies contained in the City's Strategic Plan. The strategies that resulted in the identified possible GO Bond propositions were Strategies No. 1 and 2 within Emphasis No. 3 "Comprehensive Planning" as follows:
Strategy 1: Establish a master plan for City facilities for maintenance and/or replacement of all city facilities including but not limited to: A new Activity Center (to include a tourism center); a new Community Center; the Deer Park Public Library; the Avon and Kingsdale Centers; the replacement of Fire Stations #1 and #2; a review of the facilities maintenance program, with an eye toward consolidation and centralization.
Strategy 2: Upgrade Drainage Plan and establish implementation plan.
Replacement of City facilities and major drainage projects are not typically addressed through the annual budget process due to the cost. These types of large expenditures are more often part of a bond program involving the issuance of debt.
We are now twenty (20) years removed from the City's last General Obligation bond election. The City's financial advisor, John Robuck with BOK Financial Securities, Inc. has prepared the attached capacity analysis, which indicates that approximately $65.9 million could be sold in General Obligation debt over a 3-year period as follows without requiring an ad valorem tax increase to support the debt:
Series 2021: $24,600,000
Series 2022: $15,280,000
Series 2023: $26,020,000
Total $65,900,000
Pursuant to the aforementioned Strategic Plan str...
Click here for full text