CITY COMMISSION AGENDA ITEM

Department:	Finance Department		Commission Meeting Date: Oct. 16, 2018
Staff Contact:	Danielle Buschkoetter, Interim Finance Director
Recommendations/Options/Action Requested:
Adopt on first reading Charter Ordinance No. 46, exempting the City of Lawrence, Kansas, from the provisions of K.S.A. 13-1024a and providing substitute and additional provisions on the same subject relating to general improvements and the issuance of bonds for the purpose of paying for said improvements; and repealing Charter Ordinance No. 27.
Executive Summary:		Staff recommends repealing Charter Ordinance No. 27, which was adopted on November 24, 1992, and replacing it with Charter Ordinance No. 46. This would help streamline financing processes when issuing General Obligation Bonds. Charter Ordinance No. 46 would make two (2) changes to the existing Charter Ordinance. First, Charter Ordinance No. 46 removes the requirement of the City Commission to annually set a General Obligation borrowing limit by resolution for capital projects authorized by this Charter Ordinance. Currently, staff brings forward a resolution authorizing the project and authorizing the maximum amount of general obligation bonds that may be issued to fund the project. Then, when the City is ready to issue a series of general obligation bonds to fund the projects authorized by Charter Ordinance No. 27, staff brings forward a second resolution setting an annual limit on the total amount of general obligation bonds to be funded pursuant to this Charter Ordinance.  Projects funded by General Obligation Bonds are identified through the Capital Improvement Plan and budget process annually. In addition, the Commission adopts a separate resolution authorizing staff to move forward with the issuance of bonds to fund various public improvements, prior to the time any bonds are actually issued.  Charter Ordinance No. 46 would eliminate duplication of efforts related to issuance of general obligation bonds. Second, Charter Ordinance No. 46 expands the types of projects that can be financed with general obligation bonds pursuant to Home Rule power. Currently, the City relies on many state statutes to provide the authority to debt finance projects not covered under an existing Charter Ordinance. Many of these statutes require additional administrative steps, like requiring the Commission to make special street designations.  These administrative steps have led to confusion in the past and add administrative time to the financing process.  For Charter Ordinance No. 46 to become effective, it would need to be approved by 2/3 vote of the City Commission and be published twice (once a week for two consecutive weeks) in the Lawrence Journal World. There is also a 60 day protest period that must elapse from the date of the last publication before the ordinance would be effective. Charter Ordinance No. 27 would be repealed upon the effectiveness of Charter Ordinance No. 46.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Innovative Infrastructure and Asset Management Commitment to Core Services Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		There is no financial impact.
Attachments:		Charter Ordinance No. 46 Charter Ordinance No. 27

Reviewed By: (for CMO use only)

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