| ITEM #: 3. DATE: 05/15/2023 AI #:1522 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | 2023 GENERAL OBLIGATION BOND ELECTION DISCUSSION |
| STAFF PRESENTER(S): | Jared Askelson, Deputy Finance Director |
OTHER PRESENTER(S):
Paul Bentz, Senior Vice President, HighGround, Inc.
Summary
Staff will present on a potential General Bond Election in November 2023 and seek Council consensus regarding a call for election. (Jared Askelson, Deputy Finance Director)
FISCAL IMPACT
There is no direct fiscal impact from this item. The Citizen Bond Exploratory Committee's recommendation is to include a total of $192 million of voter authorization on the November 2023 ballot. The recommendation will maintain the total property tax rate at or below $1.74, in compliance with the City's financial policy.
BACKGROUND AND PREVIOUS ACTIONS
On August 29, 2022, the Citizen Bond Exploratory Committee was created by Council action. The Committee, consisting of citizen and stakeholder volunteers, was tasked with providing a recommendation to Council regarding a potential bond authorization election in November 2023. Council gave further direction at a work session October 17, 2022, to help narrow the focus of the Committee. On May 8, 2023, the Committee recommendation was presented to Council. It was recommended that three questions be forwarded to the November 2023 ballot to include $95 million for Transportation purposes, $80 million for Public Safety purposes, and $17 million for Parks and Recreation purposes.
STAFF ANALYSIS
General obligation (GO) bonds are among the most secure financing mechanisms available to municipalities and usually offer the lowest interest rates. Having recently extinguished voter authorization in various categories of infrastructure, the City cannot issue additional GO bonds for Transportation, Public Safety, Parks and Recreation, and Facilities purposes without an election. The Council created the Citizen Bond Exploratory Committee to form a recommendation for a potential election in November 2023. The Citizen Bond Exploratory Committee has provided a recommendation that is in compliance with the Council adopted by-laws and is in line with direction provided by Council at the work session on October 17, 2022. Council direction during this item will shape the call for election action that is scheduled to occur at the May 22, 2023, Council meeting.