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HomeMy WebLinkAbout2011-10-18 Public Safety Bond Committee Minutes9/16/24, 2:47 PM Minutes October 18, 2011 - Public Safety Bond Committee - City of Ashland, Oregon Learn about the City's plan to construct and move the water treatment plant - Clean drinking water is an essential right Agendas and Minutes City of Ashland Public Safety Bond Committee (viewAll) Minutes October 18, 2011 Agenda Tuesday, October 18, 2011 Minutes Public Safety Bond Committee October 18, 2011 8:00 a.m. Lithia Room, 51 Winburn Way Attendance Committee Members: Boldt, Custodio, Fields, Kenefick, Modesitt, Walters, Daugherty, Stebbins, Kramer Staff: Holderness, Tuneberg, Seltzer Absent None Call to Order The meeting was called to order at 8:05 a.m. v Approval of Minutes https://old.ashland.or.us/Agendas.asp?AMID=4727&Display=Minutes 1/5 9/16/24, 2:47 PM Minutes October 18, 2011 - Public Safety Bond Committee - City of Ashland, Oregon The minutes were approved with corrections. Review of Total Cost for re-model/addition to existing Police Station The committee reviewed the information provided from architect David Straus. The total soft costs estimated for the project (phase 1 and phase 2) is approximately $400,000 and the total cost for the project is $2.1 million. Straus estimates approximately a 3% increase in construction costs each year the project is delayed. The committee discussed the pros and cons of seeking voter approval for GO Bonds to finance the station versus internal funding or full faith credit financing. Given the current economic times, the recent approval of GO Bonds for Fire Station No. 2 and recent rate increases for electric and water, the committee generally felt that voters would not support bond financing. Finance Director Lee Tuneberg restated the two other borrowing options: Full Faith Credit Financing — external loan which requires a pledge to repay the loan with a legal revenue stream (e.g. taxes or fees for services) Internal Loan — borrow from existing city funds, either enterprise funds (water, electric), sinking fund (equipment) or the general fund. Stebbins commented that citizens will ultimately pay for the project: either through GO bond authorization, property taxes, or fees for services and that internal borrowing simply delays the pay back. The burden of internal borrowing always falls on other departments to pay. She feels a project of this size must have a dedicated revenue stream for debt service. Tuneberg explained the City's current rating is AA3 which is good but not at the top. The City has moderate debt but declining property values could affect property tax revenue. The City does not have enough room in un-levied property tax to cover the cost of the project. The City probably could get a good interest rate for full faith credit financing but again a dedicated revenue stream would have to be identified. The committee agreed that Full Faith Credit Financing, while an option, is not a good alternative given the associated costs, unknown interest rates, potential negative impact on City's financial ratings, and requirement of a dedicated revenue stream for debt service. Finance Director Lee Tuneberg illustrated possible financing for phase 1 for $1.4 million: Use the $300, 000 in existing forfeiture funds and borrow $1.1 million either internally from other funds or externally. He estimated debt service payment at about $10,000 per year for ten years. The committee expressed that internal borrowing could expedite the project and save the annual increase of 3% in construction costs. https://old.ashland.or.us/Agendas.asp?AMID=4727&Display=Minutes 2/5 9/16/24, 2:47 PM Minutes October 18, 2011 - Public Safety Bond Committee - City of Ashland, Oregon Daugherty asked what Police projects/programs might suffer if the forfeiture funds were dedicated for the project. Police Chief Holderness replied he will hold about 5% of forfeiture funds for internal use for police related projects/training etc. Generally, the committee recognized that their recommendation to the City Council represents a cross-section of the general public. Kramer does not support recommending the Council seek voter approval for GO Bonds. The City has not yet felt the pushback on rate increases and tax increase for Fire Station No. 2 and Daugherty commented on citizen concerns with City expenditures on consultants. Custodio is reluctant to separate phase 1 from phase 2 because a safe and functioning EOC (Emergency Operations Center) is essential. It is critical that citizens understand the importance of the EOC. Motion Kramer made the following motion with a second by Modisett: The Public Safety Bond Committee recommends improvements to the existing police station be funded with a combination of forfeiture funds and internal borrowing, and while the committee recognizes the value and the importance of an EOC and police training room, it recommends the City delay that portion of the project until a future date when funds are available. Motion passes unanimously. Next steps Seltzer will draft a final report and include the committee's rational on the stated recommendation. The draft will be emailed to the committee for input. The committee will attend a Council study session on Monday, November 14 at 5:30 in the Siskiyou Room and the Council meeting the following evening at 7:00. https://old.ashland.or.us/Agendas.asp?AMID=4727&Display=Minutes 3/5 9/16/24, 2:47 PM Minutes October 18, 2011 - Public Safety Bond Committee - City of Ashland, Oregon Online City Services Email Updates Sign up to receive local important News & Events. A """ Unsubscribe Subscribe Home Water Advisory Mayor/Council Taxes Departments Codes Commissions Archived City Records Web Links https://old.ashland.or.us/Agendas.asp?AMID=4727&Display=Minutes 4/5 9/16/24, 2:47 PM Minutes October 18, 2011 - Public Safety Bond Committee - City of Ashland, Oregon Emergency Contact Info Police & Fire, Water, Electric, Red Cross, Jackson County Health, Recology Ashland Sanitary... 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