Agenda - 09-13-2005-4 - Laserfiche WebLink

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As part of the operating budget reductions approved by the Board that reduced the tax rate increase for FY 05 -06 from a recommended 9 cents to 6.5 cents, the Board decided to suspend a portion of the funding that under the 60-40 capital funding policy would have been allocated towards school and County capital, Specifically, the Board reduced the County's long -range capital allocation for 2005 -06 by $1.188 million, the approximate equivalent of 1 cent on the General Fund tax rate. The accompanying spreadsheets reflect recommended reductions to individual projects from the CIP allocations to accomplish the necessary long -range capital reductions. Attachment 4c — 2005 -15 County Capital Investment Plan - Comparison of Fiscal Year 2005 -06 Original Manager's Recommendation and Revised Manager's Recommendation Updated Debt Issuance Schedule Since voter approval of the November 2001 general obligation bonds, staff have developed and periodically updated a schedule reflecting planned timing of sales of those bonds, and issuance of related alternative financing for those projects (or portions of projects) not funded by GO bonds, Staff have used these Debt Issuance Schedules to work with the Local Government Commission to arrange sale dates for bonds and alternative financing, as the LGC ultimately must approve the timing of the issuance of debt for specific projects. The Debt Issuance Schedules also help staff to forecast total annual principal and interest payments and to monitor the County's anticipated annual debt load for compliance with the County's self - imposed standard of limiting debt payments to no more than 15 percent of annual General Fund Expenditures, The County most recently sold GO bonds in accordance with the debt schedule on August 16, 2005. Staff plan to ask the LGC to arrange issuance of alternative financing for various projects during Winter 2006. Staff will review changes to the accompanying updated Debt Issuance Schedule from the most recent version reviewed by the Board, and seeks the Board's endorsement of the attached schedule, or direction regarding any desired changes. Attachment 4d — Proposed Debt Issuance Schedule As part of the .July 2004 bond sale, the County sold $4.2 million in net two- thirds debt reduction bonds. The accompanying table reflects project allocations the Board has already approved from that source of funding, as well as the Manager's recommendations for how the balance of unallocated two- thirds bonds should be allocated among various priority County capital projects, Attachment 4e — Table — Proposed Projects to Fund with 2004 Two - Thirds Net Debt Bonds FINANCIAL IMPACT: As noted in agenda materials and as will be discussed during staff presentation of those materials. RECOMMENDATION(S): The Manager recommends that the Board provide direction to the Manager and staff on the capital matters described above, and specifically, endorse the proposed Debt Issuance Schedule and Two- Thirds Net Debt Bond allocations.