2018-02-06 Finance Minutes - Laserfiche WebLink

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FinanceCommittee Minutes..................................................................................................................................February 6, 2018 Tools that the Committee is interested in will be built into a financial model that can then be use dto evaluate implications of those tools. To kick off this review process, staff presented information on voter-approved bonds, debt capacity and LTGO bonding, fire impact fees, and land sales and other one-time funds, with highlights summarized below: Voter-Approved Bonds: The advisor is now recommending the second bond issuance of $40.6 million be done in 1 quarter of 2019 so that debt service would occur in 2020. st Debt Capacity & LTGO Bonding: The City has capacity for an addition $59 million in Councilmanic debt, but this will increase as assessed valuation goes up. Committee members asked to review the current debt horizon chart maintained by staff. While bonds are normally issued for a 20-year term, the debt payback period could be increased to 30 years which would result in lower annual debt service payments. Councilmember Robertson asked for details on the total increased cost difference between 20 and 30 years. Fire Impact Fees: The City is currently concluding a Fire Impact Fee update study, and if adopted by Council, staff estimates they would generate between $200K-$400K per year that could be used to pay off LTGO bonds, up from the average $120K. There is currently around $1.5 million available to dedicate to fire station projects. Councilmember Robertson requested the specific impact fee revenues for each year they have been in effect and asked if an automatic escalator could be included in the update. Councilmember Kruller asked how the proposed fees would compare with other communities and staff replied that information is being evaluated as part of the study. Chair Quinn confirmed that the impact fees received from the Segale development agreement would be dedicated to Fire Station 51. Land Sales & Other One-Time Funds: There is an estimated $15 million in proceeds from land sales that could be available to fund the Public Safety Plan. This is a very rough estimate, as appraisals on the properties have not been performed. There is also $3 million in the 301 fund for parks acquisition from REET 1 which can also be used for the Public Safety Plan pursuant to a recent policy decision by the Council. The Council could also designate a specific portion of REET 1 to the Public Safety Plan to preserve flexibility for parks. The Committee asked for additional detail on how REET 1 is currently being spent. Staff will begin to develop the financial planning model , and the next meeting will include the additional information requests as well as an overview of new revenue options. Chair Quinn stated an interest in having accurate figures as much as possible rather than estimates as this conversation moves forward. The Committee also requested a target date by which they should be prepared to make a recommendation to Council. DISCUSSION ONLY. III.MISCELLANEOUS Adjourned at 6:55 p.m. Committee Chair Approval