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HomeMy WebLinkAboutIR 8886INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council No. 8886 October 16, 2007 Page 1 of 2 SUBJECT: 2008 BOND PROGRAM PLANNING EFFORTS This memo is to advise Council of planning efforts underway for the 2008 Bond Program and seek authorization to proceed on some of the more immediate tasks. Currently, bond project identification efforts are underway, and a formal presentation is planned for Pre Council on October 30, which will delineate a more detailed timeline and public outreach strategy. Also at that time, staff plans to present a proposed list of preliminary 2008 Bond Program projects to Council for consideration; seek input from Council members for adjustments to the proposed listing; and subsequently, seek approval to proceed with a series of citizen input meetings. Immediate Tasks - Scheduling of Citizen Meetings: In the meantime, staff proposes to proceed with scheduling the citizen input meetings to allow sufficient time to arrange for facilities and adequate notification to citizens of these meetings. Due to the two holiday periods approaching and multiple scheduling conflicts, an abbreviated process is suggested whereby four city -wide meetings are conducted, one in each quadrant of the city on the dates, as follows: Suggested locations: Handley - Meadowbrook Community Center Greenbriar Community Center North Fort Worth Baptist Church R. D. Evans Community Center Suggested meeting dates over a 4 week period include: Monday, November 26 Monday, December 3 Monday, December 10 Monday December 17 Citizen Input Meetings: The purpose of these meetings is to provide general information to citizens about the bond program formulation process and key dates, as well as present the proposed listing of 2008 bond projects to citizens for their consideration and feedback. Next Steps: After the citizen meetings are completed, feedback and comments received will be compiled in a report to Council for their consideration. In early January, the City Manager will recommend a 2008 Bond Program for consideration/discussion in a series of Council workshops, which will be followed by a public hearing to take comments on the Council's Proposed Bond Program. Final Adoption of Proposed Program and Election Date: The uniform election date is Saturday, May 10, 2008, and it is necessary that a bond program be finalized by February 5, 2008 in order to comply with the pre- clearance requirements of the Justice Department. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS 1►�,,M;i To the Mayor and Members of the City Council • i i M.- October 16, 2007 Page 2 of 2 SUBJECT: 2008 BOND PROGRAM PLANNING EFFORTS Nature of Proposed Bond Projects — Transportation Needs: Based on direction received from Council during the summer, it is staffs understanding that this bond program be limited to addressing the highest priority arterial and neighborhood street needs. Staff intends to approach planning efforts with that appreciation, unless advised otherwise. Also, in recent meetings with Robert Goode, the Director of Transportation and Public Works, Council delineated their priorities for arterials, and it is assumed that these needs have already been identified, unless advised to the contrary. Council will have an opportunity to convey priorities at the October 30 Pre Council meeting or may contact Robert directly, if preferred. Review of Bond Program Capacity: During formulation of the FY 07 -08 Budget, staff advised that, based on certain assumptions, debt capacity is available for a bond program in the amount of $ 150M in May of 2008. The proposed Bond Program would be implemented from 2008 through 2012 and is expected to exhaust all of the City's projected debt capacity through 2012 (barring any additional increase in the debt service tax rate). Also, staff advised that this bond program is possible without an overall tax rate increase; however, the debt service tax rate would need to be increased in FY 08 -09 the equivalent of 1 cent on the tax rate (approximately $ 3.6 M based on FY 07 -08 tax values). Staff further advised that this could be accomplished using a two step process: 1) Decreasing the operating tax rate the equivalent of one -half cent and increasing the debt service tax rate correspondingly. Since funds equivalent to approximately one -half cent were earmarked in the FY 07 -08 Operating Budget for capital project funding, this would only necessitate re- allocating the one -half cent from the operating tax rate to the debt service tax rate in FY 08 -09; and 2) Identifying additional funding for the Debt Service Fund equivalent to one -half cent of the tax rate for the remaining portion of the increase. During the FY 08 -09 budget formulation, staff plans to identify funds to accommodate this Debt Service tax rate increase in the proposed budget (approx. $1.8 M based on FY07 -08 tax values). This debt model has been reaffirmed by the financial advisers, and staff recommends we proceed with this funding level in formulating the 2008 Bond Program. Overall, at this time, staff seeks Council approval to proceed with scheduling and notifying citizens of the Bond Program meetings. Further information will be provided upon request. Charles R. Boswell City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS