HomeMy WebLinkAboutFIN 2017-11-07 Item 2H - Public Safety Plan - Financing for Public Works Shops FacilityCity of Tukwila
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: November 1, 2017
SUBJECT: Financing for Public Safety Plan Public Works Shops
Allan Ekberg, Mayor
ISSUE
Discuss the financing plan and timeline for acquisition of property for the Public Works shops.
BACKGROUND
At the July 25, 2016 Committee of the Whole meeting, the Public Works Shops financing was discussed in
conjunction with the Public Safety Plan. As presented, the shops financing would be accomplished through
the issuance of limited general obligation bonds (LTGO) with 50% of the debt service paid by the General
Fund and 50% paid by the utility funds — consistent with anticipated usage.
DISCUSSION
The Public Safety Plan timeline, prepared by the Project Manager SOJ and based on the Berk financing
model, has shown site acquisition for the shops occurring in the first quarter of 2018 at an estimated cost
of $6 million. In recent weeks, a proposed site for the Public Works shops was selected and the estimated
acquisition cost greatly exceeds the $6 million budget. Depending on several factors, up to $15 million may
be needed as early as January 2018 to finance this acquisition.
Options for accomplishing this financing on a short-term basis include interfund loans or a short-term bank
loan and on a long term basis, issuance of 20 year LTGO bonds. To provide the most flexibility in selecting
the optimal financing plan given the uncertainties, the City's bond counsel, Pacifica Law Group, will be
drafting a bond ordinance that incorporates each of these financing options. The timeline for review and
possible adoption follows:
November 21
November 27
December 4
RECOMMENDATION
For information only.
Finance Committee
Committee of the Whole
Regular meeting
Consider and discuss draft financing ordinance
Review, consider and approve draft ordinance
Adopt ordinance
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