2018-06-05 Finance Minutes - Laserfiche WebLink

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Finance Committee Minutes June 5, 2018 Councilmember Kruller stated that she does not mind sensible borrowing and is not supportive of 30 -year financing. She was concerned about apparatus and equipment, as well as the construction timeline for all of the buildings, and sees relief in Option D. She is also open to the idea of delaying the Justice Center and would like the City to look at creative solutions regarding renting to other businesses. Chair Quinn stated that he is comfortable with Option D along with apparatus funding as identified in Option E. He is concerned about taking on too much debt and binding future Councils, so prefers 20 -year financing. Future budget discussions will have to include consideration of new revenues and potential cuts. He thanked staff for getting the Committee to this point and acknowledged more hard budget decisions to come. Councilmember Robertson said he agrees that Option D with 20 -year financing is the best option of those presented. He appreciates that previous Councils did not bury the City in long-term debt. He requested for the Council work session that staff prepare Options D and E with both a flat and a 1.5% sales tax so the Council can see worst case scenarios. UNANIMOUS RECOMMENDATION. FORWARD TO JUNE 11, 2018 COUNCIL WORK SESSION WITH ADDITIONAL INFORMATION REQUESTED. III. MISCELLANEOUS Adjourned at 6:20 p.m. Committee Chair Approval Minutes by LH LTGO Repayment Method Option FS 51 FS 52 FS 54 A&E JC — PW LTGO Bond Range of Annual Cash Contribution Capacity from maturing debt Total GF Cont. Total Debt Service — D-20 $12M $17M $0 $15M $68M $30M $40M $500K $1M 2026-2032 $500K $1.2M per yr $21.6M $37 M UNANIMOUS RECOMMENDATION. FORWARD TO JUNE 11, 2018 COUNCIL WORK SESSION WITH ADDITIONAL INFORMATION REQUESTED. III. MISCELLANEOUS Adjourned at 6:20 p.m. Committee Chair Approval Minutes by LH