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<br /> In addition to site size and location, the City Council must consider other non-technical but <br /> certainly equally important issues such as image, re-development potential and contribution to <br /> . development of a "city center" location, among others. <br /> When final site evaluations are executed, the Committee strongly recommends that a criteria <br /> matrix similar to that included herein be developed to fairly examine all the candidate sites. <br /> Financinl! Alternatives <br /> Financing alternatives for new facilities were discussed with Jim Casserly/City Development <br /> Consultant. Since the construction of a City Hall is not a revenue-producing enterprise, methods <br /> of financing are somewhat limited (How the debt is structured is another matter and will be <br /> briefly discussed.). <br /> .. General Obligation Bonds <br /> 0 <br /> The issuance of G.O. Bonds is the customary approach to the financing of a capital <br /> improvement such as a City Hall. G.O. Bonds must be approved by a majority of <br /> electors voting on the question of issuing the obligations. If the issue is under $1.2 <br /> million (total amount in any twelve-month period), it may be sold at a public or <br /> private sale. The payment of the debt is not included in the City's levy limitations. <br /> Generally, a city cannot incur debt in excess of 2 percent of its market value. <br /> 0 Certificates of Participation <br /> . <br /> A non-traditional approach is the use of certificates of participation. The certificate <br /> holder has a right to participate in a lease that the City has executed. The City leases <br /> the building on a yearly basis and appropriates funds annually to make the lease <br /> payments. However, the City can refuse to appropriate for the lease payments and <br /> vacate the property. Certificates are not general obligations of the City and, as a <br /> result, will not have a competitive a rate as a G.O. Bond. <br /> Certificates do not have to be approved by the voters, are not subject to levy limits <br /> or the limits on net debt and can be sold publicly or negotiated. The certificate <br /> payments will appear identical to a bond structure. <br /> 0 Self-Financed <br /> Another non-traditional approach, the City could essentially lend itself the money to <br /> pay for the project and then pay itself back in a manner similar to the Certificate of <br /> Participation. <br /> . 11 <br /> L. <br /> i I <br /> L <br />