LRB � RESEARCH AND ANALYSIS SECTION ANALYSIS

NOVEMBER 29, 2006 AGENDA                       ITEM 26 FILE 061002

FINANCE & PERSONNEL COMMITTEE                                  JAMES CARROLL  

File #061002 is a substitute resolution authorizing sale and issuance of general obligation bonds for parks and public grounds.

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 $1,965,000 for parks and public grounds.

3. The borrowing will provide funding for the following:

• Concealed Irrigation and General Landscaping/City Boulevards - $913,000 The program funds the irrigation replacements and landscaping that is coordinated with street reconstruction projects.  The replacement irrigation systems support planted beds only.

• Tree Planting Program - $1,052,000 � This program funds the planting of street trees and other plant materials in conjunction with the construction of new streets or the reconstruction of existing streets or sidewalks.  It also funds the planting of replacements for dead, diseased or damaged trees.  In 2007, 248 new trees will be planted due to street reconstruction projects, and 3,900 replacement street trees.

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 28, 2006

                 Richard Li