ITEM TITLE:
Discussion Item: Special Election for Bonding Referendum
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Authorize staff to prepare a special election resolution for council consideration
SUMMARY STATEMENT:
• Staff is seeking Council consensus to proceed in drafting a resolution for a special election / bonding resolution in September, 2019.
• Though the city has sufficient cash reserves to fund most prioritized projects, staff proposes issuing additional debt in 2019 as a revenue-retention tactic.
• Staff estimates that $400,000 of revenue is at risk in both 2019 and 2020. In order to retain this excess revenue, the City needs a new instrument to generate additional debt-service expenses in each year.
• Staff is proposing another bond-authorization ballot measure via special election in early September, 2019. The recommended project is Pavement Management Phase 1 (Construction).
• This project is comprised of:
o Immediate (2019) repairs, which are already funded:
§ Robe River Dylan and River Drives repaving
§ Clifton, E. Hanagita, E. Kobuk, Fairbanks, Kennicott, and Meals patching, repairs and lane replacement
o Design for 2020 construction (design is already funded):
§ South Harbor drive, Meals- Pioneer to Egan, W. Egan, remainder of Robe River
• The bonding ballot measure would seek voter authorization for $7 to $10 million (current staff estimate, pending final scope and design) in debt to fund construction in 2020 with the aforementioned design.