Item A - Nov.2004 Bond Issue - Laserfiche WebLink

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average being less than the first year cost. The Budget Committee recently approved revised debt policies that set a limit on net direct debt of 1.0% of real market value. After issuance of the debt for this project, the City's net direct debt to real market value in FY10 would range from 0.3% to 0.6%, which is under the policy limits. Option A Option B Option C1 Option C2 Option D GO Bonds -- $12,620,000 $22,050,000 $47,775,000 $70,820,000 Internal Funds $28,186,000 29,133,000 29,200,000 3,715,000 40,649,000 Total Funding $28,186,000 $41,753,000 $51,250,000 $51,490,000 $111,470,000 Taxpayer Cost - 1 st Year -- $26 $45 $97 $144 Net Direct Debt - 1st Year 0.4% 0.5% 0.6% 0.8% 0.98% In addition, there will also be increased operations and maintenance cost for the facilities. Preliminary estimates range from $1.1 to $1.7 million annually for the Community Safety facility and $3.0 million for City Hall, depending on the size of the facility. There will be some funds available to offset the increased O&M costs. It might be necessary, however, if there are no significant changes in the fiscal health of the General Fund, to reallocate General Funds to pay the net increase in O&M when the facilities are complete. Other Background Information None. Timing The council was scheduled to discuss the Civic Center plan and a possible parks, recreation, and open space bond measure on July 14. Continued discussion of a November ballot measure will occur on July 21. If a financing plan is adopted that requires a bond measure, the council will need to take final action on a resolution by August 9, 2004, to place a measure on the November 2004 ballot. The council agenda includes a meeting on July 26 for this purpose. OPTIONS 1. The council may direct staff to prepare one or more bond measures for the November 2004 ballot. 2. The council may decide not to place a measure on the November 2004 ballot. STAFF RECOMMENDATION The staff recommendation is to place the Option B Civic Center bond measure on the ballot, as described in Attachment B. This would mean asking voters to approve a $12,620,000 General Obligation Bond request. S[IGGESTED MOTION Move to direct staff to develop a bond measure for the November ballot based on the Civic Center Option B, as described in Attachment B. L:\CMO\2004 Council Agendas\M040721\S040721A. doc