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Early Direction for the Fiscal Year 2024-25 Budget <br />April 2, 2024 <br />Page 15 <br />4 <br />1 <br />5 <br />8 <br />Economic Development <br />Specialist (50%) <br />Bilingual Business Retention and <br />Attraction for businesses including <br />specialty outreach and grants coordination <br />with small businesses and microenterprise <br />efforts for start-ups. <br />$73,950 <br />Total $1,020,880 <br />Shall staff include an allocation of approximately $0.5 million in the proposed FY 2024- <br />25 budget to continue funding these positions for January 1 through June 30, 2025, with <br />a future annual recurring cost of approximately $1 million? <br />Water Enterprise Revenue Bonds <br />In 2019, the City prepared a water rate study, which indicated debt (revenue bonds) <br />would be necessary to meet the capital needs of the system. Since 2019, the water <br />enterprise has been spending down an accumulated fund balance for water <br />infrastructure improvements. <br />The rate study consultant’s latest estimate of planned improvements that remain <br />unfunded is $30.2 million. In addition, the City is currently installing smart meters as part <br />of the Advanced Metering Infrastructure (AMI) project. The latest information suggests <br />we have an $11 million funding shortfall to complete the project. Finally, the City may <br />have an opportunity to refinance the outstanding $8.9 million of water bonds issued in <br />2014. <br />The City has assembled a financing team to structure a proposed revenue bond issue. <br />The debt would be secured by water enterprise revenue, and therefore would only <br />require City Council approval. The financing team would only be paid if bonds are <br />issued, and payment would come from the bond proceeds. <br />Staff expects to return to the City Council prior to June 30 to consider a <br />recommendation to proceed with a proposed debt financing. <br /> <br />FISCAL IMPACT <br />There is no direct fiscal impact at this time, as the recommended action would only <br />provide direction to staff. City Council is scheduled to consider the proposed FY 2024- <br />25 budget in May and take action in June. <br />EXHIBIT(S) <br />1. City Council Priorities <br />2. FY23-24 Measure X Spending Plan <br />Submitted By: Kathryn Downs, FMSA Executive Director <br />Approved By: Tom Hatch, Interim City Manager