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Open the Public Hearing on the November 6, 2018 General Obligation (G.O.) Bond Referendum and Bond Order.
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Staff:
Department:
Kenneth C. Pennoyer, Director
Business Management
Amy Oland, Assistant Director
Loryn Clark, Executive Director
Housing and Community
Overview: On April 25, 2018, the Council introduced the bond order proposed for the November 6, 2018 referendum and adopted the resolution setting a public hearing on the bond order for May 9, 2018. The next step in the referendum process is to hold a public hearing on the bond order. Voter approval of the bond order in the November 6, 2018 referendum would authorize the issuance of up to $10 million of affordable housing G.O. bonds.
Recommendation(s):
That the Council conduct a public hearing on the bond order proposed for the November 6, 2018 Referendum.
Decision Points:
* Holding a public hearing on the bond order is the next step in the referendum process. Council will take final action on the bond order, setting the ballot question and the referendum date at the May 23, 2018 Council meeting.
Key Issues:
* After Council takes final action on the bond order, the bond order and notice of referendum will be published twice. The referendum will be held November 6, 2018.
* A successful referendum will result in the Town having the authority to issue up to $10 million of affordable housing bonds for a period of seven years. A three-year extension can be granted by the Local Government Commission.
* Issuance of the bonds would require a separate action by the Council.
Fiscal Impact/Resources: The affordable housing bonds will be repaid from the Debt Fund; however, there is insufficient capacity in the fund to support the existing capital program and the proposed affordable housing bonds without an increase in the dedicated tax. Based on our assumptions concerning timing of issuance and interest rates, an increase in the Debt Fund tax of 1 penny will be sufficient to cover repayment ...
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