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Open the Public Hearing: Issuance of Two-Thirds Bonds to Fund Public Safety Equipment.
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Staff:
Department:
Amy Oland, Director
Business Management
Overview: The Town is pursuing the issuance of $1.98 million of "two-thirds" bonds to fund public safety equipment. On December 7, 2022, the Council formally introduced the Bond Order and set a public hearing for January 11, 2023. Staff applied to the Local Government Commission (LGC) for the issuance of the two-thirds bonds and has taken other actions necessary to meet statutory requirements. The two-thirds bonds would be sold on February 14, 2023 in conjunction with the final issuance of the 2018 referendum general obligation bonds for affordable housing and the final issuance of the 2015 referendum general obligation bonds for streets and sidewalks.
Recommendation(s):
That the Council:
1. Holds the public hearing on the bond order authorizing the issuance of general obligation bonds in the maximum amount of $1,980,000 for public safety.
2. Adopts the resolution for the bond order authorizing the issuance of two-thirds general obligation bonds in the maximum amount of $1,980,000 for public safety.
3. Adopts the resolution for Public Notice of Adoption of Bond Order
Key Issues:
Two-Thirds Bonds Background
* Under the Local Government Bond Act, the "two-thirds rule" authorizes local governments to issue general obligation bonds without a referendum under certain circumstances.
* Two-thirds bonds are restricted to two thirds of the net reduction in general obligation bond principal for the previous fiscal year. The Town's reduction in principal for FY 2022 was $2,977,000. Two-thirds of which is approximately $1,984,667. Two-thirds bonds must be issued in the fiscal year immediately following the year for which the principal reduction is calculated.
* Two-thirds bonds are also restricted to certain uses including streets, parks, public facilities, and public safety. All other allowable purpose...
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