Council, Committe & Board Research Center
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HERE ARE THE UNDERLINED LINKS Ther3 items on the agenda for this study session:
Item 1-a File #19-0602
| Title: | Hear a presentation and discuss the benefits of the Arizona Municipal Water Users Association and an update on the Drought Contingency Plan for the region. |
| Attachments: | 1. Presentation |
The Presentation is 2.37MB
Collaboration Keeping the Glass Full
Mesa City Council
May 23, 2019
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Item 1-b File #19-0603
| Title: | Hear a presentation and discuss the series 2019 bond sales. |
| Attachments: | 1. Presentation |
2019 Bonds Sales Update
May 23, 2019
Michael Kennington, Chief Financial Officer
Larry Given, Managing Director, Hilltop Securities
2019 Bond Sales
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• General Obligation Bonds
Series 2019 Bonds $33M
• Utility Systems Revenue Bonds
Series 2019A Bonds $94M
Series 2019B Refunding Bonds $54M
Series 2019C Refunding Bonds $79M
2019 Mesa Bond Market Demand
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• General Obligation Bonds Series 2019 Bonds -2.3X (in total orders vs. par amount)
• Utility Systems Revenue Bonds
Series 2019A Bonds – 4.6X
Series 2019B Refunding Bonds – 1.4X
Series 2019C Refunding Bonds - 2.5X
2019 Bond Sales Results
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• ‘New Money’ Bonds – Interest cost realized was better than forecasted.
General Obligation – Interest Cost of 2.7% $4.5 M less interest cost over life of bonds ($704k over forecasted period)
Utility Revenue – Interest Cost of 3.3% $31.5 M less interest cost over life of bonds ($3.6M over forecasted period)
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Item 1-c File #19-0588
| Title: | Hear a presentation, discuss, and provide direction on the impact of the proposed City Charter amendment in the initiative application filed with the City as Serial Number IN2020-02 on the fiscal year 2019/2020 general fund expenditures and the fiscal year 2020/2021 general fund budget. |
| Attachments: | 1. Presentation, 2. Application for Initiative IN2020-02 |
Impact of the Proposed Initiative
• A.R.S. §9-500.14: “A city or town shall not spend or use its resources…for the purpose of influencing the outcomes of elections.”
• Does not prohibit “the use of public resources to investigate the impact of ballot measures on a jurisdiction.” (Atty. Gen. Opinion No. I15-002 )
• Purpose of presentation is to communicate the initial assessment of the impact of the Proposed Initiative .
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Proposed Initiative: City Charter Section 614 Uses of Utility Revenues
1. Operation & Maintenance of Public Utility Services
2. Retirement of Indebtedness (Utility Services & Assets)
3. Development of Utility Assets
4. Reimbursements by the Solid Waste Division or Utility Department to other City Departments for Support of Utility Services
5. Promotion of any of the City’s Utility Products or Services
6. Development, or Promotion or Use of Systems, Equipment, Services, Devices or Materials to Promote Conservation & Recycling by Utility Customers
7. Employee Benefits (Solid Waste Division & Utility Department)
8. Bond Reserve Funds Issued for Utility Assets
9. General Fund Deposit or Transfer not to Exceed Twenty Percent (20%) of the Gross Revenues from the City’s utility services
10.Surplus Amounts Reimbursed to Utility Customers
Decrease Number of Municipal Construction Projects and Improvements:
2018 Bond Authorized Projects * Estimated Annual O&M for Project
• Fire Station 221 -$2.0M
• Northeast Public Safety Facility -$3.5M
• Plaza @ Mesa City Center -$200K
• Dobson Library Improvements -$275K
• Main Library Improvements -$20K
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*Projects expected to have construction begin during the next two fiscal years
Decrease Projects and Improvements: 2018 Bond Authorized Projects*
(Continued)
Estimated Annual O&M for Project
Federal Building Renovation -$210K
• Monterey Park -$467K
• North Center Street -$470K
• Harris Basin Playground -$17K
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*Projects expected to have construction begin during the next two fiscal years
Options to Decrease Expenditures for a Remaining Estimated Funding Gap
• If the Proposed Initiative were approved by the voters, the City would need to consider an alternative budget that accounts for the reduction to the General Fund due to the Proposed Initiative.
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CITY COUNCIL STUDY SESSION THU 23 MAY 2019
