TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Parks |
Loreen Hamilton |
425-556-2336 |
|
Public Works |
Phil Williams |
425-556-2733 |
|
Finance |
Chip Corder |
425-556-2189 |
DEPARTMENT STAFF:
|
Finance |
Kelley Cochran |
Deputy Director |
|
Public Works |
Eric Dawson |
Senior Engineer |
TITLE:
title
Approval of the Redmond Senior & Community Center Bond Ordinance
a. Ordinance No. 3077: An Ordinance of the City of Redmond, Washington, Providing for the Issuance and Sale of One or More Series of Limited Tax General Obligation Bonds in the Aggregate Principal Amount of Not to Exceed $16,600,000 to Finance Costs Related to Acquiring, Designing, Constructing, Developing, Improving, Equipping, and Furnishing a City Senior and Community Center, and to Pay Costs of Issuance of the Bonds; Providing for the Disposition of the Proceeds of Sale of the Bonds; and Delegating Authority to Approve the Method of Sale and Final Terms of the Bonds
OVERVIEW STATEMENT:
recommendation
Staff is presenting a bond ordinance to be placed on the Consent Agenda at the Regular Business Meeting on April 5, 2022. This ordinance reflects the following:
• The aggregate principal amount of the bonds shall not exceed $16,600,000 (this provides flexibility in how the bonds are structured to ensure that $16,000,000 in bond proceeds are available for the project).
• The aggregate purchase price of the bonds shall not be less than 98% nor greater than 125% of the aggregate stated principal amount of the bonds (this provides flexibility in how the bonds are structured to ensure that $16,000,000 in bond proceeds are available for the project).
• The final maturity date for each series of bonds shall not be later than December 1, 2042.
• The true interest cost for the bonds (in the aggregate) shall not exceed 4.0% (this is higher than the 3.0% currently assumed in the bond financing projections due to the rising interest rate environment and the high level of economic uncertainty).
The City Council approved an ordinance on February 15, 2022, increasing the project budget to $48.0 million. Currently, $22.5 million is funded, with $25.5 million needing to be funded with available one-time cash and/or Councilmanic bonds. At its March 8, 2022 Study Session, the City Council directed staff to pursue the issuance of $16.0 million in Councilmanic bonds, with the balance funded by $9.5 million in available cash.
Staff advised the City Council that bonds need to be issued in the April-June 2022 timeframe due to the upcoming biennial budget process, which will consume the Financial Planning staff’s capacity in the second half of the year, and the rising interest rate environment.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
o Envision Redmond Senior Center Building Stakeholders Report March 2020
o Redmond Community Strategic Plan
o 2017 Community Priorities for the Future of Redmond’s Community Centers Report
o Redmond Comprehensive Plan
o Redmond Parks, Arts, Recreation, Culture, and Conservation (PARCC) Plan
o Redmond Facilities Strategic Management Plan
o 2017-2022 Redmond Capital Investment Program (CIP). Redmond Zoning Code 21.10.070B
• Required:
City Comprehensive Plan: FW-23, CC-12, PR-19, PR-35, PR-36, PR-37, PR-38, UC-19, UC-20, DT-12, and DT-15, Redmond Zoning Code-RZC 21.10.070B
• Council Request:
On July 20, 2021, Council provided direction to proceed with the design and construction of the Redmond Senior & Community Center at a total cost of $44 million. In February 2022, an ordinance was passed increasing this total cost to $48 million.
• Other Key Facts:
N/A
OUTCOMES:
Receive direction from City Council remaining appropriation for Redmond Senior & Community Center funding.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
See Attachment A - Community and Stakeholder Outreach and Involvement
• Outreach Methods and Results:
See Attachment A - Community and Stakeholder Outreach and Involvement
• Feedback Summary:
See Attachment A - Community and Stakeholder Outreach and Involvement
BUDGET IMPACT:
Total Cost:
$48 million
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
CIP
Budget Priority:
Infrastructure, Healthy and Sustainable, Vibrant and Connected
Other budget impacts or additional costs: ☐ Yes ☒ No ☐ N/A
If yes, explain:
N/A
Funding source(s):
CIP: $17.116 million
State Capital Adopted Budget: $1.25 million
Surplus Park Impact Fees from 2019-2020: $1.648 million
Surplus REET from 2019-2020: $2.486 million
Councilmanic Bonds: $16.0 million (preliminary direction at March 8, 2022 Study Session)
Available Cash: $9.5 million (preliminary direction at March 8, 2022 Study Session)
Budget/Funding Constraints:
If Councilmanic bonds are issued, they cannot exceed the 50% total project cost funding threshold per the City’s Fiscal Policies.
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
See Attachment B - Council Review Previous Contacts |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
The City’s Finance Department needs to issue debt in the April-June 2022 timeframe due to the upcoming biennial budget process and staffing capacity limitations.
ANTICIPATED RESULT IF NOT APPROVED:
If not approved, Finance staff cannot issue debt until early 2023, likely resulting in higher interest rates.
ATTACHMENTS:
Attachment A - Community and Stakeholder Outreach and Involvement
Attachment B - Council Review Previous Contacts
Attachment C - Bond Ordinance - LTGO Bonds 2022