October 3, 2020
By Mike Kruzman / email@example.com
Brighton City Council has approved a Notice of Intent resolution for the issuance of capital improvement bonds.
In a report to City Council, Brighton City Manager Nate Geinzer and Finance Director Gretchen Gomolka summarize that the City is committed to implement a series of projects over the next several years that are unable to be financed with annual tax revenue or fund balance. The projects could, however, be financed through the issuance of long term debt in the form of capital improvement bonds. City staff and an appointed task force worked throughout September with bond counsel and bond placement agents to review bonding scenarios for the City.
The Notice for Intent, which is required, calls for a debt issued to not exceed $18-million with a term not exceeding 10 years. The projects planned with the bonds are estimated to cost between 14 and $15-million, but the Notice calls for an amount not exceed $18-million, giving the City some leeway for potential future needs or emergencies. At Thursday’s online meeting of City Council, Gomolka shared this and the task force’s recommendation for a longer term period, potentially 20-25 years, with Council.
Most of City Council was on board with the lengthier term, with Mayor Pro-Term Susan Gardner and Councilman Jim Bohn stating so for flexibility reasons. Councilman Jon Emaus said he would prefer to issue for only 10 years when the time comes, but was open to the longer term on the Notice if that was the will of Council. Bohn made the motion with the timing on the term not to exceed 20 years. The vote passed 6-1 with Councilman Kristopher Tobbe, who said during discussion he was against this due to the high dollar amount, casting the dissenting vote.