CITY COMMISSION AGENDA ITEM

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Department:

Finance

Commission Meeting Date:  September 5, 2017

Staff Contact:

Bryan Kidney, Director

Recommendations/Options/Action Requested:

 

Adopt Resolution No. 7222, authorizing the construction of Phase 1 of a new Police Facility of the City of Lawrence, Kansas, pursuant to Charter Ordinance No. 40, and the issuance of General Obligation Bonds to pay the costs thereof.

 

Executive Summary:

The 2018-2022 Capital Improvement Program adopted by the City Commission on August 8, 2017 includes construction of the first phase of a new police facility for $17 million to be substantially completed in 2019. This is in addition to the $1.5 million approved in the previous years’ 2017-2021 for design.

 

Purpose

Amount Budgeted

When Approved

Planning and Design

$  1,500,000

2017 Budget

Construction

17,000,000

2018 Budget

 

$18,500,000

 

 

In order to use tax exempt financing for the design and construction, the City must adopt a resolution that the City’s intent is to issue tax exempt bonds to pay for the improvements.

 

The Finance Department plans to issue temporary notes in 2018 to pay for the initial project costs when the scope and timing of the project is further developed. Once the project and final costs are known, the City will then issue general obligation bonds to pay off the temporary notes. The date of the definitive financing will not be known until the final project calendar is complete. However, for planning purposes the CIP reflects 2019 as the year of final debt financing.

 

The purpose of Resolution No. 7222 is to set $18,500,000 as the maximum par amount (not including financing costs) the City would finance with tax-exempt debt before financing costs. While this resolution does authorize the project, the individual approval of contracts for improvements will follow the City’s purchasing policy.

 

Strategic Plan Critical Success Factor

Safe, Healthy, and Welcoming Neighborhoods

Core Services

Fiscal Impact (Amount/Source):

The design and construction of the first phase of the police facility was included in the 2018-2022 Capital Improvement Program. The debt service for the cost of improvements are included in the financial forecast.

Attachments:

Resolution No. 7222

 

Reviewed By:

(for CMO use only)

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