Fiscal Note
The resolution amends the 2014 Capital Budget to authorize $2 million in general obligation borrowing for the Special Assessment Fund. This fund collects revenue from special assessments (e.g., payments from property owners for curb, gutter or sidewalk work and payments from developers for infrastructure costs to improve subdivisions prior to development). The cash balance has declined from $5.4 million at the end of 2007 to $779,492 at the end of 2013; it is expected to have a negative cash position by 2015.
The reasons for the drop in cash are three-fold (in order of magnitude from greatest to least): 1) payment for improvements made in some undeveloped subdivisions prior to the recession have been deferred due to the slow pace of the housing recovery from the recession; 2) greater use and longer terms for property owner installment payments of special assessments; 3) decline in general fund payments for infrastructure work along parcel boundaries owned by the City (e.g., curb and gutter work along a city park).
The Special Assessment Fund is expected to recover these deferred revenues over time; these payments will be used to retire the debt that will be issued as part of this resolution.
Finally, the additional borrowing authority is general obligation debt that is not repaid from the general fund. As such, the debt service results in additional 2015 operating budget capacity under the levy limit formula (approximately $260,000).
Title
SUBSTITUTE Amending the 2014 adopted capital budget to authorize $2 million in general obligation borrowing to fund projects supported from the Special Assessment Fund.
Body
Preamble
Assessment districts are contained within capital projects. The special assessment fund is a capital project funding source. Over the past number of years, the special assessment fund balance has declined due to an increase in districts with longer installment terms and deferred districts. In order to continue funding ...
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