City Council Study Session Agenda and Packet 2013 01 29

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CITY COUNCIL COMMUNICATION SUBJECT: FINANCING/BONDING OPTIONS TO ADVANCE CAPITAL IMPROVEMENTS DATE: JANUARY 29, 2013 PAGE 3 OF 4 Again, the issue of historically low interest rates and thus the possibility that the overall cost of construction may increase more rapidly than the cost of borrowing is an important consideration. As the City considers all future capital needs, the timeline and necessity for some improvements may suggest a pay/build now scenario rather than waiting for cash reserves to support demand. Staff would like some feedback from City Council on this concept. Additional revenue generation possibilities include a transportation fee. Setting fees similar to the City of Loveland would generate approximately $200,000 per year. City Council considered this in the past and decided not to pursue this mechanism. Potential projects that could be funded with additional revenues from the sources outlined above include the following: • Expanded Recreation and Senior Center • Outdoor Aquatics Facility • Golf Course Improvements • Street Reconstruction • Pedestrian and Bike Connections • Museum Building/Enhancements • Wastewater Plant Expansion (Revenue Bonds) • Water Plant Maintenance and Expansion (Revenue Bonds) As stated above in the communication, extensive work needs to be done to fully understand the costs for potential projects as well as complete a prioritization process to finalize which projects would be included in a ballot issue. For example, the last strategic/design look at potential improvements for the Recreation and Senior Center occurred in 2007. That work would need to be updated, 30% design completed and consensus obtained on the improvements to be constructed. Lastly, as expanded and additional capital facilities are considered, additional staffing and maintenance must be taken into account. New or enhanced facilities will likely require added staff for programming and/or maintenance. These operational and maintenance costs must be factored into the long-term fiscal plan for the City. In 2010, prior to the use tax vote in November of that year, the City commissioned polling to gage citizen support for such a tax increase. A power point on the results and the survey instrument are attached. City staff strongly suggests doing additional preliminary polling on revenue/tax preferences should the City Council decide to pursue a ballot initiative. 21