Memorandum

City of Lawrence

Finance Department

TO:	Diane Stoddard, Interim City Manager
FROM:	Bryan Kidney, Finance Director
DATE:	July 15, 2015
RE:	Presentation of Debt Financing Options for Police Facility

Historically, the source of repayment of debt for a police facility construction and/or improvements has been identified as either sales taxes or property taxes. If it were to be paid for from just property taxes, the debt service fund would be used. If it were to be paid from an existing or new sales tax, the sales tax reserve fund would be used as the source of repayment. If a combination of the two would be used, the source would be from both.  

The City has developed a simple debt financing forecast for the debt service fund. It allows staff to enter different options for funding the approved Capital Improvement Program in order to see the long-term impact of capital projects to the debt service fund balance.

The City also has a multi-year forecast of the sales tax reserve fund. This plan assists in identifying the level of expenditures that can be afforded from the sales tax.

Monday evening at the Commission work session, staff will present the financing model along with the multi-year sales tax reserve plan. Staff will walk through different options of funding based on different amounts, timing assumptions and level of funding from each source available.

Attached is the latest debt service fund forecast. Neither one of the plans currently show any expenditures for a police facility.