Agenda Item Title:
Request Authorization to use Vision Fund allocation designated for Downtown Parking Ramp to Call outstanding Parking Revenue Bonds
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
02/13/2019
City Council Hearing Date:
02/19/2019
Staff Contact:
Pauline Sumption, Finance Officer
Agenda Item Summary:
There is currently in excess of $1.7 million allocated in the Vision Fund that originated as part of Phase III in 2005 for Downtown Parking Ramps. In 2008, the City borrowed money(2008 Parking Revenue Bonds) to build the 3rd level of the downtown ramp. To call these bonds, the City would need to pay approximately $1.64 million on June 1, 2019. By authorizing this, it would remove the bond covenant requirements and allow flexibility in using the cash on hand (approximately $900k as of 12/31/2018) to purchase new meters and associated software outright instead of financing them through a 3rd party vendor. In addition, by paying the bonds off early, the City would realize an interest savings over the remaining life of the bond of nearly $1.7 million.
Funding Source & Fiscal Impact (if applicable):
Funding | Cost Center |
---|---|
Saves the City nearly $1.7 million in interest expense over the remaining life of the bond | |
Recommendations:
Origination Recommendation Action:
Approve