Item A: City Council Goal - City Hall Complex

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ATTACHMENT B City Hall Complex Preliminary Funding Options Funding Options There are three funding options presented in this analysis for three different scales of project, all of which are funded with internal resources plus General Obligation (“G.O.”) Bonds. These funding options correspond to the estimated project costs of options that will be presented to the council at the workshop. At this point, council does not need to make a decision on the specific funding plan for the City Hall Complex projects. In order to move forward with the next activities in the City Hall com- plex master plan process, however, council should make a choice about the approximate scale of the project to be taken forward for more analysis. This very preliminary funding plan is pro- vided to give council information to inform the choice about the project scale. The following chart summarizes a very preliminary funding option for three different scales of project. The specific funding items are described following the chart. City Hall Complex Preliminary Funding Options $ in millions Option A Option B Option C General Obligation Bonds $130 $110 $90 Internal Resources Facility Reserve $30 $30 $30 Limited Tax Bonds 10 10 10 Asset Sales 0 – 2 0 – 2 0 – 2 Other Miscellaneous Sources 0 – 8 0 – 8 0 – 8 Total Internal Resources $40 – 50 $40 – 50 $40 – 50 Totals $170 – 180 $150 – 160 $130 – 140 General Obligation Bonds: Based on the City’s adopted financial management goals and poli- cies, voter-approved G.O. bonds would be an appropriate funding source for the projects. The policies state that G.O. bonds are to be used for major capital construction or improvements in support of general municipal services. G.O. bonds must be approved by voters, and approval is subject to the double-majority provi- sions of Measure 50. G.O. bonds are repaid with a property tax levy that is outside of Measure 5’s tax rate limits. The uses of G.O. bonds are limited to construction expenses and may not be used for certain other kinds of expenses, such as freestanding equipment, temporary relocation, or moving costs. The next election that is not subject to the double-majority is in November 2008. The City could ask voters for approval to issue G.O. Bonds to fund the portion of the City Hall Complex pro- jects beyond what is available with internal resources.