1983 July 18 to 1984 July 9 - Council Packets

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/". -3- 4. E ui Tent Debt Certlftoo te - U.F. 372/S.F. 823 allows home rule charter cities to issue capital notes (equipment debt certificates), by resolution, to purchase public safety equipment, road construction and maintenance equipment, and other capital equipment with a useful life no less than the term of the certificate.. The certificates are limited to a term of five years and they may not have a total principle amount exceeding one -tenth of one percent of Line City's assessed valuation. Until Budget Year 1983, the City regularly issued these certificates for the purchase of police squads. It was then determined that the City Charter does not provide authority for issuing such certificates. Staff requested that the Charter Commission consider amending the Charter to provide such authority, however, they determined that they did not wish to do so unless and until the City's revenues were unable to meet budgetary needs. As you can sec, the City's General Fund revenues fall far short of operating and capital needs and the addition of the projected 1984 Revenue Sharing allotment of $51,000 does little to close that gap. The use of an equipment debt certificate would allow the City to satisfy more of our capital requests which are increasing due to the increasing age of our physical plant and equipment and requests to invest In the improvement of our parks system. Staff would recommend that the Council consider the issuance of an equipment debt certificate in the principle amount of cii n_n_n_ Fnr rho purchase of two squad cars with a term of two years which, at 9% interest, would equal $26,105 or 113,05 per year. 5. Special Assessments - As was mentioned under Item 3, staff projects 1984 Federal Revenue Sharing receipts at $51,000 which is only ?4.7% of the first round General Fund capital requests of $146,620, please note attached memo outlining capital rennests. At this time, the Ravenna Sharing program has not been renewed and current appropriptions will expire on September 30, 1933. Of the $146,620 in capital requests, $60,000 is being pro- posed for the 1984 sealcoat and overlay program. From pre- vious discussions, it would appear that we all agree that a regular sealcoat and overlay program for the City's streets increases the useful Life of the streets which reduces the need for pavement replacement and the resulting large assess- ments on abutting properties. (Please note attached letter from Dan Boxrud dated July 16, 1983.)