The proposed ordinance would require that any general debt reserves applied to reduce general fund debt service be matched by an equal appropriation from the general fund for capital projects. General debt reserves are a non-recurring revenue source derived from issuance of general obligation debt. Use of these non-recurring revenues, particularly premiums received as part of city general obligation borrowing, for one-time capital project costs is consistent with maintaining a positive structural budget balance (i.e., on-going revenues are sufficient to meet on-going expenditures).
General debt reserves applied to reduce general fund debt service totaled $3.5 million in 2011 and $11.2 million in 2012. The 2013 adopted budget applies $5 million from general debt reserves to reduce general fund debt service. Direct appropriations for capital projects totaled $507,000 in 2011 and $6.95 million in 2012. The 2013 adopted budget includes a $4.16 million direct appropriati...Click here for full text