City Council Study Session Agenda and Packet 2015 04 14

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CITY COUNCIL COMMUNICATION CITY COUNCIL COMMUNICATION AGENDA ITEM II SUBJECT: DISCUSSION – OPTIONS AFTER LIBRARY BONDS ARE RETIRED (PAID OFF) DATE: APRIL 14, 2015 PRESENTED BY: MALCOLM FLEMING, CITY MANAGER KEVIN WATSON, FINANCE DIRECTOR SUMMARY: Staff now projects that the 2004 General Obligation Library Bonds will be completely paid off by December 1, 2018, five years ahead of the original December 1, 2023 maturity date. This projection is based on the current trend in growth of the City’s assessed valuation continuing. If voters approve a levy of the same amount as the existing Library Bond levy (1.526 mills) to start in 2019 after the Library bonds are paid off, it would maintain the same tax rate and, depending on the term, interest rate, and overall structure of the new bonds, support a new bond issue of approximately $10 million. Potential construction projects that could be funded or partially funded with a levy maintaining the same tax rate once the library bonds are paid off or with additional revenues that are not currently in the 2015-2019 CIP include the following:  Expanded Recreation and Senior Center  Outdoor Aquatics Facility  Pedestrian and Bike Connections  Museum Building/Enhancements  Expanded Street Resurfacing The costs to operate and/or maintain some of these facilities would be significant and could require an additional ballot measure asking voters for a tax increase to cover operations and maintenance costs. If Council wants to put such issues on the 2016 ballot, there would be significant staff and Council work to develop information and conduct public involvement, and costs for related items including polling to determine potential voter support for various options, developing preliminary designs and more accurate cost estimates for potential projects, and potentially other items. Staff wants to hear Council’s perspectives on this matter. 2