LRB – RESEARCH AND ANALYSIS SECTION ANALYSIS

NOVEMBER 29, 2006 AGENDA                       ITEM 28 FILE 061000

FINANCE & PERSONNEL COMMITTEE                                  JAMES CARROLL  

File #060100 is a substitute resolution relating to the sale and issuance of general

obligation bonds for bridges..

Background and Discussion

1. The Comptroller’s Office annually submits initial-borrowing resolutions for projects and programs approved in the adopted budget.

2. The resolution authorizes the sale of general obligation bonds in the amount of

       $4,316,000 for bridges. 

3. The borrowing will provide funding for the following:

• Bridge Construction-State and Federally Funded - $2,841,000 – The program assures a level of expenditures for bridge improvements that are consistent with the ability to finance improvements necessary to preserve the City’s bridge system, with State and Federal grant and aid.  

• Bridge Reconstruction – Local - $1,475,000 – The program assures a level of expenditures for bridge improvements and repairs necessary to preserve the City’s bridges through new borrowing.

Fiscal Impact 

Until the actual structuring of the debt issue is determined by the Public Debt Commission, details relating to the long-term fiscal impact will not be known. Depending on actual sale date in 2007, a maximum of 6 months interest would be incurred during the year.  If sold after July 1, 2007, there would be no fiscal impact in 2007. 

Cc:  Marianne Walsh       Prepared by:

Craig  Kammholz      Jim Carroll,  X8679   Mark Nicolini      LRB Fiscal Review

                W. Martin Morics                                                                                    November 22, 2006

                Richard Li