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Council Discussion <br />Staff is seeking direction from the City Council regarding the following items: <br />CIP Funding Update — Franchise Fees & Debt Service <br />Included in this budget are franchise fee assumptions of $375,000 annually, estimated to start in <br />2025 to offset debt service for the new fire station. Per the August 19 budget workshop, Council <br />directed staff to work with the City's financial advisor, Ehler's, to determine the timing and <br />structure of a bond issuance to occur in the Spring of 2025, in order to align with the anticipated <br />development of the new fire station. Attachment G are the preliminary Series 2025 general <br />obligation CIP bond schedules provided by Ehler's, highlighting one scenario at current market <br />bank qualified (BQ) AAA rates and the second scenario at current market BQ AAA rates with a <br />75 basis points cushion. The scenarios assume the City will issue bonds at a par value between <br />$4,645,000 and $4,690,000, of which $4,425,000 would be directed to the project construction <br />fund, with remaining funds to cover the costs of issuance, underwriter fees, and interest. Each <br />scenario assumes the bonds would settle on May 15, 2025 at different maturity dates of 10 years, <br />15 years, and 20 years. What changes, if any, should staff assume? <br />Given Council's previous feedback towards implementing a franchise fee to offset debt service for <br />the new fire station, Council may want to discuss what, if any, additional public engagement is <br />needed. A separate public hearing for franchise fees is not required, the City can choose to approve <br />ordinances and a franchise agreement with Xcel Energy. If Council decides to move forward with <br />a franchise fee, Staff recommends having it in place no later than 90 days prior to implementation <br />date. <br />Preliminary Lew Adoption <br />At the September 23, 2024 City Council meeting, the City Council will need to decide the <br />maximum levy that it is willing to approve and adopt. What levy scenarios does Council want <br />staff to bring forward for the preliminary levy adoption? <br />Budget Impact <br />None. <br />Attachments <br />A. Preliminary 2025 Property Tax Levy PowerPoint Presentation <br />B. Preliminary 2025 General Fund Budget with 13.94% levy <br />C. General Fund Budget to Actual Comparison for 2023, 2022, and 2021 <br />D. Preliminary Series 2025 General Obligation CIP Bond Schedules <br />Page 6 of 6 <br />