Title
Ordinance in the Amount of $5,020,000 Amending the Parking Facilities Bond Fund Budget
Body
Council Priority: Maintain Infrastructure and Provide Sustainable Growth Opportunities
Department: Transportation
Council District: 3
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Johanna Cockburn, 373-2861
Contact 2 and Phone: Richard L. Lusk, 373-2077
PURPOSE:
To consider a budget ordinance amendment to the Parking Facilities Bond Fund in the amount of $5,020,000 to appropriate funds for financing of the February One Parking Garage project.
BACKGROUND:
On August 20, 2019 the City Council held a public hearing and authorized the issuance of taxable limited obligation bonds to fund the Eugene Street Parking Garage project and the February One Parking Garage project. Bonds for the Eugene Street Parking Garage in the amount of $29,685,000 were issued October 2019. On or about January 14, 2021, the City plans to sell $36,120,000 taxable limited obligation bonds for the February One Parking Garage to fund construction costs, repayment of funds advanced to the project for land, capitalized interest during construction and bond issue expenses. The bonds will be issued with a 25-year term and an average interest rate of approximately 3.0%, maturing November 1, 2045.
BUDGET IMPACT:
The City will use bond proceeds of $36,120,000 to fund the following costs:
Estimated project costs $32,191,241
Repay the Parking Facilities Operating Fund for 2,133,759
funds advanced for land acquisition
Capitalized interest during construction 1,184,157
Bond issue expenses 610,843
Total $36,120,000
The $2,133,759 to be repaid to the Operating Fund will be used to fund the new Parking Access and Revenue Control System (PARCS) being installed in all six downtown parking garages.
At this time, a budget amendment of $5,020,000 is required to increase the budget for the Eugene Street Parking Garage to $36,120,000 to fully account for the bond issue and project fund expenditures.
RECOMMENDATION / ACTION REQUESTED:
The Transportation and Finance Departments recommend that City Council approve the attached budget ordinance amending the Parking Facilities Bond Fund in the amount of $5,020,000.