Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $800,000 OF NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF ACQUIRING AND INSTALLING EQUIPMENT CONSTITUTING THE PHASE I PILOT PROGRAM OF THE CITY'S MUNICIPAL BROADBAND SERVICES SYSTEM PROJECT, AND DECLARING AN EMERGENCY.
Executive Summary: This Ordinance authorizes internal borrowing for the pilot phase of the broadband system implementation.
Body
Legislative History
Resolution 14-122 (passed October 1, 2014) authorized a professional services contract with Magellan Advisors for a Broadband Needs Assessment and Business Plan.
Resolution 15-31 (passed March 3, 2015) authorized a professional services contract with Magellan Advisors for the Deployment Phase of the Broadband Project.
Purpose & Explanation
The purpose of this legislation is to authorize internal borrowing to fund the pilot phase of the broadband system. The debt proceeds will be placed in the newly created Broadband Services Fund (510) to cover implementation expenses and capital purchases related to the pilot program.
The personnel costs of the Broadband Office Manager position will be paid for with existing funds in the Administration budget rather than with debt proceeds. When the 2016 budget is prepared, we plan to include the position in the Broadband Services Fund budget.
The note is for one year at an interest rate of .35%.
Timing Considerations
Staff is requesting emergency language to allow the broadband project to proceed as planned.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required - debt proceeds are considered appropriated with passage of this legislation.
Recommendation
Suggested Action
Staff recommends approval of the issuance of $800,000 in notes to pay for the pilot phase of the broadband project.
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Finance Director