Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO EXCEED $7,500,000 OF NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF IMPROVING AND EXPANDING THE CITY’S VELOCITY BROADBAND FIBEROPTIC SYSTEM BY ACQUIRING AND INSTALLING INFRASTRUCTURE EQUIPMENT TO ENABLE PROVISION OF RESIDENTIAL INTERNET SERVICE.
Brief Description: This Ordinance authorizes borrowing for the installation of the expanded residential broadband services.
Body
Legislative History
Ordinance 20-120 authorized $3,975,000 of bonds for the broadband services project. These bonds financed the fiber system for commercial properties/businesses.
Purpose & Explanation
During 2023 and 2024, city staff pursued a partnership with a private entity to expand fiber to the home due to increased desire from residents for more reliable high-speed internet. The City was unsuccessful in obtaining a partnership and the decision was made to pursue the expansion ourselves. In November 2024, the fiber to the home ad hoc committee and city staff presented a plan to roll out fiber to the residents over a four-year period. The total estimated cost of the full roll out is $18.8 million.
The purpose of this Ordinance is to finance the pilot area as well as the first year and one-half of the estimated expansion cost. The plan is to issue short-term notes until the project is complete at which time we would permanently finance the project with bonds.
Timing Considerations
Staff is requesting passage of the legislation to allow the Velocity notes to be issued.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends passage of the Ordinance to allow the issuance of the notes.
Submitted by,
Thom Sheridan, City Manager
Jeff Knoblauch, Asst City Manager/Finance Director