Report to Mayor and City Council
Tuesday, September 17, 2024
Consent
SUBJECT:
Title
CONSIDER ADOPTING RESOLUTION NO. 24-092 AMENDING THE FISCAL YEAR 2024-25 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS, AND AMENDING THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM TO INCORPORATE VARIOUS CAPITAL PROJECTS TO BE FUNDED, IN PART, BY THE 2024 LEASE REVENUE BONDS (CITY COUNCIL)
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I. SUMMARY
On July 16, 2024, the City Council and the Carson Public Financing Authority authorized and directed execution of certain financing documents and directed certain related actions in connection with the issuance of its 2024 Lease Revenue Bonds in an aggregate principal amount not to exceed $92,000,000. This strategy was intended to provide immediate funding for high priority capital projects without depleting the City’s General Fund Reserves.
On September 12, 2024, bond revenues were to be deposited into the General Fund Reserve ahead of this meeting. As such, staff is seeking City Council approval to allocate proceeds from the Lease Revenue Bonds, now in the City’s General Fund Reserve, to various capital projects. Consequently, staff is requesting City Council approve amendment of the Fiscal Year 2024-25 5-year Capital Improvement Program to reflect the high priority projects not previously listed.
II. RECOMMENDATION
Recommendation
ADOPT Resolution No. 24-092 “A RESOLUTION OF THE CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2024-25 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS, AND AMENDING THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM TO INCORPORATE VARIOUS CAPITAL PROJECTS TO BE FUNDED, IN PART, BY THE 2024 LEASE REVENUE BONDS”
1.
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III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council as allowed by law.IV. BACKGROUND
On July 16, 2024 the City Council and the Carson Public Financing Authority adopted Resolution Nos. 24-071 and 24-01-CPFA respectively, authorizing and directing execution of certain financing documents and directing certain related actions in connection with the issuance of its 2024 Lease Revenue Bonds in an aggregate principal amount not to exceed $92,000,000.
Staff has been actively managing various high priority capital projects to be funded by the proceeds of the Lease Revenue Bonds in anticipation of the funds being deposited into city accounts. Several of these projects were not originally included in the adopted Fiscal Year 2024-25 5-year Capital Improvement Program. Notably, on July 2, 2024 the City Council amended the City’s Fiscal Year 2024-25 budget (via Resolution No. 24-067) and Capital Improvements Program to incorporate Project No. 1731: City Hall Basement/Emergency Operations Center Renovations. That action also included a budget amendment to transfer and borrow funds from various other capital projects to ensure there were funds available to immediately fund the project.
As a result, staff is requesting approval of a new budget amendment to reimburse the various capital projects accounts that were reduced by Resolution No. 24-067. Additionally, the budget amendment is seeking to allocate funds to the various high priority capital projects as follows:
|
Project Name/No. |
Amount |
|
Carriage Crest - PW1368 |
$10,436,995.00 |
|
Comm Ctr - PW1726 |
$9,000,000.00 |
|
Comm Ctr Coiling Wall - PW1632 |
$1,484,000.00 |
|
Security Cameras Phase III - PW1674 |
$1,500,000.00 |
|
Mills Park Rec Ctr - PW1795 |
$2,189,854.00 |
|
Foisia Park - PW1610 |
$7,750,000.00 |
|
Anderson Park - PW1718 |
$1,307,000.00 |
|
City Hall Restrooms - PW1786 |
$1,697,000.00 |
|
Street Paving - PW1791 |
$15,000,000.00 |
|
EOC Renovation - PW1731 |
$206,000.00 |
Finally, staff is requesting an amendment to the Fiscal Year 2024-25 5-year Capital Improvement Program by adding the following:
Add Project No. PW1795 - Mills Park Recreation Center Renovations
Add Project No. PW1794 - Council Chambers AV Improvements
Add Project No. 1786 - City Hall Bathrooms and Kitchenettes
Add Project No. 1632 - Community Center Coiling Wall
At the time of authoring this report, the City was scheduled to receive all funds from the Lease Revenue Bonds on September 12, 2024, after which staff will deposit into the City General Fund Reserve. By the date of this public City Council meeting, sufficient funds will be available to allocate to the projects referenced in this staff report via Resolution No. 24-092.
V. FISCAL IMPACT
Staff is requesting a budget amendment of $56,870,849.00 from the General Fund Reserve to fund the various high priority capital projects, as outlined in Resolution No. 24-092 (Exhibit 1).
VI. EXHIBITS
1. Resolution 24-092 (pgs. 4-7)
2. Amended FY24/25 CIP (pgs. 8-16)
1.
Prepared by: Dr. Arlington Rodgers, Public Works Director; William Jefferson, Finance Director; Dr. Robert Lennox, Assistant City Manager