Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $3,850,000 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.
Brief Description: This Ordinance authorizes internal borrowing for the installation of the broadband services system (Velocity Broadband). These roll the total amount of the notes issued in 2018 of $3.4 million plus an additional $450,000 as described in the Velocity Broadband Business Plan and approved by Council as part of the establishment of the Broadband Service Fund.
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 $2,100,000 of notes for the continuation of the broadband services project.
Ordinance 17-113 authorized $3,400,000 of notes for the continuation of the broadband services project.
Ordinance 18-95 authorized $3,400,000 of notes for the continuation of the broadband services project.
Ordinance 19-7 established the Velocity Broadband Enterprise Fund (510).
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. In 2017, we added an additional $1.3 million, bringing the total borrowing to $3.4 million. This ordinance authorizes the rollover of the notes plus an additional $450,000 for the continuation of the project.
At the February 26, 2019 Council workshop, staff presented the Velocity Broadband Business Plan. The plan was presented in conjunction with the question of whether or not we should establish a separate Velocity Broadband Enterprise Fund. The decision was made to establish a separate fund and that the debt service related to broadband would be paid out of the new enterprise fund.
As part of the discussion, staff informed Council that in...
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