Bond Advisory Committee
Following the review of the FY 2024-28 Proposed Capital Improvements Plan (CIP) by the City Council and the Capital Improvements Advisory Committee (CIAC), the City Council passed a resolution on October 5, 2023, to create the Bond Advisory Committee. This committee will play an essential role in reviewing, advising, and strategizing for the financial future of the City's major infrastructure projects.
The City Council has designated members of the CIAC as the ad hoc Bond Advisory Committee.
What will the Bond Advisory Committee Do?
Review and Recommendations: The committee will review the proposed CIP projects for scope and need. With approximately $34 million in planned projects, it's essential to ensure that these projects align with the city's long-term goals and provide the most benefit to its citizens.
Financing Options: By February 2024, the City Manager will present various financing options. The committee, in collaboration with the staff, will analyze the options including General Obligation (GO) Bonds, Certificates of Obligation (CO’s), and Revenue Bonds. The financing method will dictate timelines and processes, especially if GO Bonds are chosen, which require voter approval.
Project Financing Analysis: Within the CIP, $14 million of the annual fund would support projects encompassing roadways, drainage, and buildings. The remaining $20 million is planned for Water and Wastewater projects. The committee will ensure a balanced and thoughtful consideration of these projects in light of financing options and city needs.
Establishing a Bond Advisory Committee offers several advantages including:
Strategic Guidance: A well-structured CIP ensures the City’s infrastructure is maintained with stable financing.
Neutral Recommendations: The committee will provide impartial advice on project necessities, scope, timing, and financing methods.
Alignment with the Strategic Action Plan: The committee's efforts will further support the following:
- Developing 5-Year CIP Projections
- Creating a long-term capital and debt financing plan
- Ensuring Reliable and Sustainable Infrastructure
Financial & Budgetary Management: The proposed CIP envisions 35 projects with an estimated value of $34 million. If fully implemented, the anticipated annual debt payments stand at $1 million from the General Fund and $1.5 million from the Utility Fund. These debt services would be appropriated yearly in the adopted budget.
At its core, the long-term CIP seeks to provide clear direction, ensuring the maintenance and integrity of the city’s infrastructure through balanced financing. The Bond Advisory Committee stands as a testament to transparent governance, aiming to furnish neutral insights on project demands, scopes, schedules, and funding mechanisms. It's a strategic move, complementing the city's dedication to its Strategic Action Plan, encompassing goals such as developing 5-year CIP projections, formulating a sustainable capital and debt financing strategy, and championing reliable infrastructure.
With a dedicated focus on the city's major projects and their financing, this committee will be instrumental in the city's development journey.