LRB – RESEARCH AND ANALYSIS SECTION ANALYSIS

NOVEMBER 29, 2006 AGENDA                       ITEM 30, FILE 060998

FINANCE & PERSONNEL COMMITTEE                                  JAMES CARROLL  

File #060998 is a substitute resolution relating to the sale and issuance of general obligation bonds for equipment of the fire department, and reasonable facilities for fire protection apparatus or equipment.

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

       $2,558,000 for fire engines and other equipment. 

3. The borrowing provides funding for the following:

• Major Capital Equipment - $2,458,000 – The funds will purchase major capital equipment which include 3 ambulances, $176,000 each for $528,000, 3 pumper trucks, $430,000 each for $1,290,000, and 1 aerial ladder, $640,000 budgeted as capital projects.

• Auxiliary Power Supply - $100,000 – This is a new account for 2007.  The funding provides for an auxiliary supply of power to engine houses to enhance the department’s response capability

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 Research & Analysis

                W. Martin Morics                                                                                   November 21,2006

                Richard Li