Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $2,100,000 OF NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF ACQUIRING AND INSTALLING EQUIPMENT AS PART OF THE CITY’S MUNICIPAL BROADBAND SERVICES SYSTEM PROJECT, AND DECLARING AN EMERGENCY.
Executive Summary: This Ordinance authorizes internal borrowing for the installation of the broadband services system (Velocity Broadband), adding an additional $1.3 million to the original $800,000 that was issued for the pilot phase.
Body
Legislative History
Ordinance No. 15-81 authorized the issuance of $800,000 of notes for the pilot phase of the broadband services project.
Purpose & Explanation
The City issued an $800,000 one-year note for the pilot phase of Velocity Broadband. This Ordinance will add $1.3 million to the note to fund the continuation of the installation of the broadband system, bringing the total borrowing to $2.1 million.
The proceeds will be separately maintained in the Broadband Capital Fund (402).
The City will use an interest rate of .50%, based on current conditions.
Timing Considerations
Staff is requesting passage of the legislation to allow the project to proceed as planned. Emergency language is included in this Ordinance, so that it will be effective immediately upon passage.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends passage of the Ordinance and requests Council action on first reading.
Submitted by,
Jane Howington, City Manager
Jeffery Knoblauch, Finance Director