CCP 10-19-1995 - Laserfiche WebLink

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