AGENDA #4h
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Schedule for Issuance of Bonds
DATE: April 14, 2004
Adoption of the attached resolution would establish a schedule for issuing General Obligation bonds as discussed by the Town Council at its March 30 budget work session.
BACKGROUND AND DISCUSSION
In November 2003, Chapel Hill voters approved $29.36 million in bonds. At the March 30 budget work session, the Council discussed a possible schedule for issuing the bonds over the next several years (see copy of report, attached). The Council agreed to establish the following schedule:
|
|
Year of Issuance |
|
|||
|
|
2004 |
2006 |
2008 |
2009 |
Total |
|
Sidewalks and Streets |
|
|
|
|
5,600,000 |
|
A. Sidewalk Construction |
600,000 |
900,000 |
600,000 |
500,000 |
2,600,000 |
|
B. Pedestrian Amenities |
100,000 |
100,000 |
75,000 |
75,000 |
350,000 |
|
C. Neighborhood Traffic Calming and Pedestrian and Bicycle Safety Improvements |
300,000 |
150,000 |
100,000 |
100,000 |
650,000 |
|
D. Downtown Streetscape Improvements |
500,000 |
1,000,000 |
250,000 |
250,000 |
2,000,000 |
|
Library Facilities |
500,000 |
400,000 |
7,480,000 |
7,880,000 |
16,260,000 |
|
Parks/ Recreational Facilities |
300,000 |
4,400,000 |
300,000 |
|
5,000,000 |
|
Open Space and Areas |
1,200,000 |
800,000 |
|
|
2,000,000 |
|
Public Buildings (Energy Efficiency Projects) |
500,000 |
|
|
|
500,000 |
|
Total |
4,000,000 |
7,750,000 |
8,805,000 |
8,805,000 |
29,360,000 |
The initial sale of $4 million would begin the program of work discussed in the accompanying memorandum while keeping the Town’s overall debt load within manageable levels for the upcoming year. The attached memorandum provides more detailed information about the debt service implications of the first proposed bond issuance.
Among the major projects to begin are the initial planning and design for the library expansion, reimbursement of the General Fund for about $700,000 worth of already-acquired open space, additional work on the Streetscape Master Plan and initial work on energy efficiency projects in Town buildings.
Additional Note
At the March 30 meeting, a Council member asked about the suggested program for greenway construction and specifically about the possible use of 2001 Orange County bond proceeds. The County had indicated that $1 million of bond proceeds would be available for this purpose. We believe from previous discussions that the Commissioners are primarily interested in projects that would link Chapel Hill, Carrboro, and Orange County trail systems. The only proposed project that could potentially link trails in all three jurisdictions is the Bolin Creek Trail. The Council/Commissioner Project Planning Committee (PPC) is scheduled to discuss the issue at its meeting on April 8.
RECOMMENDATION
We recommend that the Council adopt the attached resolution, establishing a schedule for the issuance of the 2003 General Obligation bonds. We will provide additional detailed information about each issuance at the time of requesting Council authorization for each respective sale.
ATTACHMENTS
A RESOLUTION ADOPTING A SCHEDULE FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS (2004-04-14/R-8)
WHEREAS, in November 2003, the voters of Chapel Hill approved $29,360,000 of General Obligation bonds for various capital improvements; and
WHEREAS, on March 30, 2004, the Town Council received a report from the Town Manager regarding the sale of the bonds, and approved in concept the schedule therein recommended;
NOW, THEREFORE, BE IT RESOLVED by the Council of Town of Chapel Hill that the Council establishes a schedule for the sale of the $29,360,000 of General Obligation bonds as follows:
|
|
Year of Issuance |
|
|||
|
|
2004 |
2006 |
2008 |
2009 |
Total |
|
Sidewalks and Streets |
|
|
|
|
5,600,000 |
|
A. Sidewalk Construction |
600,000 |
900,000 |
600,000 |
500,000 |
2,600,000 |
|
B. Pedestrian Amenities |
100,000 |
100,000 |
75,000 |
75,000 |
350,000 |
|
C. Neighborhood Traffic Calming and Pedestrian and Bicycle Safety Improvements |
300,000 |
150,000 |
100,000 |
100,000 |
650,000 |
|
D. Downtown Streetscape Improvements |
500,000 |
1,000,000 |
250,000 |
250,000 |
2,000,000 |
|
Library Facilities |
500,000 |
400,000 |
7,480,000 |
7,880,000 |
16,260,000 |
|
Parks/ Recreational Facilities |
300,000 |
4,400,000 |
300,000 |
|
5,000,000 |
|
Open Space and Areas |
1,200,000 |
800,000 |
|
|
2,000,000 |
|
Public Buildings (Energy Efficiency Projects) |
500,000 |
|
|
|
500,000 |
|
Total |
4,000,000 |
7,750,000 |
8,805,000 |
8,805,000 |
29,360,000 |
This the 14th day of April, 2004.