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<br /> <br /> <br /> <br />$3.5 billion, meaning the maximum annual amount of debt service the City can carry on all of its <br />CIP Bonds is currently over $5.6 million. The CIP portion of the City’s 2014A Bonds averages <br />$282,040 annually, leaving over $5.3 million of available capacity remaining under the limit. For <br />discussion purposes only, a conservative estimate of the annual levy on a 20-year, $10 million <br />G.O. Bond issued today is $665,000. <br /> <br />CIP Bonds are also included in the calculation of the City’s statutory debt limit, set at 3.0% of <br />EMV. In 2021, the debt limit applied to the City is $105 million. As of September 2021, the City <br />only has $3,600,000 of existing debt subject to the statutory debt limit. <br /> <br />Reimbursement Regulations <br />Under federal law, a municipality is allowed to use money from its general fund to pay for <br />certain project costs before tax-exempt bonds are issued. This can happen only after passing <br />what is called a “reimbursement resolution” and then filing a declaration of intent to reimburse <br />itself from those subsequently issued bonds. This limitation applies to “hard costs” such as land <br />acquisition, grading, site improvement and construction. Preliminary expenses like design <br />studies and engineering specs are exempted. The declaration must identify the potential <br />capital project it intends to reimburse funds for and the proposed bond amount. The <br />declaration can be adopted as late as 60 days after the initial expenditure intended for <br />reimbursement is made. <br /> <br /> <br />I look forward to discussing this financing with the City.