Loading...
HomeMy WebLinkAbout09-09-19 City Commission Packet Materials - A3. Res 5090, Form and Details of the General Obligation Bonds for the BPSC - SUPPLEMENTAL MATERIALSMonday, September 09, 2019 Resolution No. 5090 –Determining the form and details of obligation bonds, authorizing the execution and delivery and levying taxes for the payment. Contributing factors to the sale •Upgrade in the City’s Bond rating to Aa1 •Bond market and timing of the sale •Diverse group of investors Details •2.0996% interest •$7.3million less than estimated Bond Principal Amount Interest Total Debt Service Estimated for BPSC Ballot Education 36,965,000.00 17,302,105.22 54,267,466.80 Final BPSC Pricing 34,405,000.00 12,490,545.84 46,895,545.84 Total Savings 7,371,920.96 Citizen Impact •First year is a partial payment the second year will be slightly higher with a full payment. •Updated median home of $354,000, this typical resident will see $71.48 for FY20 •Previous median of $292,000 would be $59.62 in FY20 Final Schedule Monday, September 09, 2019 Resolution No. 5068 –Setting Tax Levies for FY20 Background-Approved Budget •ESTIMATED DURING BUDGET: Mill levy value: $108,490 Certified Values and Max Mill Levy •The median home went up as well by 21% from $292,000 to $354,000 •4.5% New Construction City of Bozeman Values 2019 Change Special Mobile -14% Manufactured Homes 47% Business Equipment 14% Real Property (Residential & Commercial)23% Centrally Assessed 3% Net & Gross Proceeds 0% Certified Values and Max Mill Levy •Mill levy Value: $125,423 Certified Values and Max Mill Levy •20.2% change Levy Details •Based on the dollar amounts in the budget Recommendation •Levying the same number of mills as approved budget Recommendation Mills Levied 187.70 Mills Unlevied General fund mills 0.75 911 mill levy 9.00 Total unlevied 9.75 Maximum Mill levy 197.45 Recommendation •Additional $224,507 more in revenue •Bogert Pavilion repair, the Commission appropriated $200,000 in the adopted budget for repairs. On July 15, 2019, the Commission reviewed the repair options for Bogert Pavilion. The option preferred the Option 3, which is estimated to be $650,000. •$14 hour wage–We have made progress towards the $14 hour minimum wage and market there is a need for additional dollars of $15,000 to reach our goals throughout our organization. Recommendation Recommendation Assessed Market Value Based on Budget $ =185.91 mills Recommended = 187.70 mills $200,000 $506 $511 Median Home ~$354,000 $895 $904 $400,000 $1,011 $1,021 General Fund Balance •Past Practice: the Commission has asked the Finance Department to estimate cash carry over from the prior fiscal year so that the Commission could apply unexpected cash to decrease the tax levy. •Recommendation:increase the General Fund’s balance to 17% of the budgeted expenditures. To do this the recommendation is to not reduce the levy or increase appropriation with any remaining cash carryover over and let it remain in fund balance. •At this point in time we are on track to meet but not exceed by a material amount our carryover projections. Fiscal Effects-Recommendation Fiscal Effects-Recommendation Tax Increment Financing Districts Tax Increment Financing Districts •This hearing has been advertised so the Commission may increase the levy up to 9 mills under the maximum (188.45mills) •Received no public comment •Resolution is drafted with the recommended levies Monday, September 9, 2019 Resolution No. 5069 –Amending the City’s Annual Budget for the General fund to Include Items to be funded with fund reserves, unanticipated revenue of previously unbudgeted revenue. Recommendation: •Bogert Pavilion repair, the Commission appropriated $200,000 in the adopted budget for repairs. On July 15, 2019, the Commission reviewed the repair options for Bogert Pavilion. The option preferred the Option 3, which is estimated to be $650,000. •$14 hour wage–We have made progress towards the $14 hour minimum wage and market there is a need for additional dollars of $15,000 to reach our goals throughout our organization. •This hearing has been advertised so the Commission may make any change to the General Fund’s operating and capital budgets •Received no public comment Monday, September 9, 2019 Ordinance No. 2026 –Restricting Drought Reserve funds in the Water Fund. Restricted-Drought Reserve •The Commission adopted the rates on August 19, 2019, which included a $0.08 per HCF (hundred cubic feet) fee for all users, to be restricted and used as a Drought Reserve. •To show reserve in financial reports as restricted, we must have an ordinance restricting these funds for its intended purposes of use during declared stages of drought. •For all funds of the City, spending of resources happen in the following order per GAAP for state and local governments:•Restricted -Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation (an ordinance). •Committed -Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint. •Assigned -Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the Commission delegates the authority. The City Commission delegates this authority to the City Manager. •Unassigned -Amounts that are available for any purpose; these amounts are reported only in the General Fund. Monday, September 9, 2019 Resolution No. 5080 –Amending the City’s Annual Budget for the Tourism BID Fund Appropriations for the Fiscal Year Ending June 30, 2020 (FY20). TBID-Budget Amendment •The Tourism Business Improvement District (TBID) was created 10 years ago and the district sunsets September 10, 2019. The District has not been re-created and the district will be wrapped up and dissolved. •This resolution appropriates the assessments collected, $1,198,596, and to bring fund balance $0. •Funding will not be distributed until a final dissolution plan and signed MOU with the Chamber of Commerce is approved by the Commission.