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CITY COMMISSION AGENDA ITEM |
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Department: |
Finance |
Commission Meeting Date: January 3, 2017 |
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Staff Contact: |
Bryan Kidney, Finance Director |
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Recommendations/Options/Action Requested: |
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Adopt Resolution No.7186, declaring the City’s intent to issue one or more series of its general obligation or special obligation bonds in an aggregate amount not to exceed $5,000,000 to finance a portion of the costs of acquiring, constructing, and equipping a facility to be located in the city and occupied by the Lawrence Humane Society, Inc., and authorizing other actions related thereto. |
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Executive Summary: |
The City has a contract with the Lawrence Humane Society to provide shelter facilities per the City’s required statutory animal control functions. The Humane Society’s current facility is inadequate for their mission of humanely providing space for Lawrence’s homeless and abandoned animals.
The Humane Society is embarking on a capital campaign to raise $5,000,000 towards a new facility, and made a request of the City to add an item to the 2017-2021 CIP for the City to participate in financing the facility in the amount of $2,500,000. This would bring the total cost of the proposed facility to $7,500,000.
City staff worked with the Humane Society staff, legal counsel, and financial advisors to develop a plan of financing to keep the budget impact to the City minimal and within the City’s financial forecasts. In order to proceed with the plan of financing, staff recommends that the governing body adopt a resolution of intent for the financing. This resolution will provide assurance to the Humane Society and their donors that the City will be a partner in the project. The resolution will also allow City staff to begin work with legal counsel to prepare the needed agreements and gives the City the tax-exempt authority to issue the debt. |
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Strategic Goal Area: |
Public Safety |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City will be debt service on approximately $2,500,000 beginning in fiscal year 2021. At the current interest rates, the debt service would be approximately $200,000 per year. The item was included in the 2017-2021 CIP. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☒CT ☐BM |