Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $3,400,000 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 $2,100,000 notes currently outstanding. This will bring the total to $3.4 million.
Body
Legislative History
Ordinance No. 15-81 authorized the issuance of $800,000 of notes for the pilot phase of the broadband services project. Ordinance 16-123 authorized $1,300,000 of notes for the continuation of the broadband services project.
Purpose & Explanation
In 2015, we issued an $800,000 note for the pilot phase of Velocity Broadband. In 2016, we added $1.3 million to fund the continuation of the installation. For 2017, we need to add an additional $1.3 million, bringing the total borrowing to $3.4 million. The original estimate was $3.9 million.
The proceeds will be separately maintained in the Broadband Capital Fund (402).
The City will use an interest rate of 1.25%, 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
Jeff Knoblauch, Finance Director