Item A: City Council Goal - City Hall Complex

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ATTACHMENT B Impact on Debt Burden and Debt Policies It is also essential to examine the impact of the bonding proposals on the City’s debt burden. The chart below sets out the impact of each of the proposals against the City’s debt policy limit of 1.0% of debt to real market value, assuming that the debt is issued in FY09. As shown below, all of the options would result in a debt burden that is within the policy limits. Net Direct Debt Debt to Real GO Bonds Limited Tax Outstanding in Market Value $ in millions Issued Bonds Issued FY09 in FY09 Option A $130 $10 $183 0.81% Option B $110 $10 $163 0.72% Option C $90 $10 $143 0.63% Operating and Maintenance Costs Although not part of the plan for financing the capital costs, it is important to include the esti- mated operating and maintenance costs for the new building. The Multi-Year Financial Plan includes a preliminary estimate of the ongoing O&M costs for a City Hall renovation or replace- ment at about $2.3 million. However, this figure does not reflect the reduction in O&M costs attributable to existing City office space that would be vacated and surplused under the various consolidation options being considered. The actual net increase in O&M costs would depend on the scale of the project undertaken. Given the City’s structural budget imbalance, there is no obvious source of funding for a new ongoing commitment of General Fund dollars of any net increase in O&M costs. If the council decides to authorize construction of this project, and assuming no change in the health of the General Fund, a future year budget process may have to reallocate existing General Fund dollars to the net increase in O&M on this facility. Further analysis will be conducted as the consolida- tion options are narrowed and studied further.