2000-05-15 - Laserfiche WebLink

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80 $300,000; recreation facilities master plan- $200,000; and public utilities (automated meter reading system) - $3 million. Ms. Scott said that both bond rating agencies have again given Charlottesville a "AAA" bond rating. Ms. Scott said that bidding will be done this year on the intemet. Mr. Toscano said he has read that localities are getting better rates as a result of bidding on the internet. Responding to questions from Mr. Caravati, Ms. Scott said that she anticipates bids in the neighborhood of 5 1/2%, and said the initial debt service will be $450,000 and will decline annually thereafter. Ms. Scott noted that this amount is included in next year's budget. Mr. Caravati asked for details about private contributions to City park renovations. Mr. Cox asked if the School Board has prioritized their capital budget allocation, and Mr. O'Connell said the School Board's top priority is the HVAC system at Walker. Ms. Richards said she has been hearing from McGuffey artists that the City may have future plans for the building, such as residential uses, and Mr. O'Connell said he is not aware of any such plans. Mr. O'ConnelI did note that one issue with the McGUffey renovations is that the artists' rent is very inexpensive and has not increased over the years, nor is it proposed to be increased as a result of the renovations. Mr, Cox asked whether this bond issuance is higher than those done in the past, and asked what is being projected for bonds in the next five years. Ms, Scott said bonds in the amount of $5 million have typically been issued every two years, and other refunding issues have been done to reduce rates, Ms. Scott said it is only in the past few years t?att bonds have been issued for utilities, which are paid for through the utility fees, and issuance of these bonds is expected to continue. Mr. Caravati asked if any problems arose during the bond rating process with regard to future capital projects such as the court complex, and increased costs for Rivanna Water and Sewer Authority. Ms. Scott said that RWSA increases will impact the City through increased utility rates. Ms. Scott said tentatively $7.5 million is expected to be needed in the next two years for future debt needs, but the bond agencies feel comfortable with the City's debt management. Ms. Scott noted that bond issues by separate authorities such as RWSA do not count toward the City's debt limit. The public hearing was opened, but as there were no speakers, the public hearing was closed. Mr. O'Connelt thanked Ms. Scott and her staff and others for their help in maintaining the "AAA" bond rating. Mr. O'C0nnell said he has spoken with the bond agencies about the City's future needs and he was told that there would be problems as long as the City continues long-term planning, and changes are not done as part of the budget process. Mr. O'Connell said he is trying to develop a model and is planning to have the City's financial advisor come in to talk to Council. On motion by Mr. Toscano, seconded by Ms. Richards, the ordinance entitled "AN ORDINANCE AUTHORIZING THE ISSUANCE OF NINE MILLION DOLLARS ($9,000,000) PRINCIPAL AMOUNT OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF CHARLOTTESVILLE, VIRGINIA, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF VARIOUS PUBLIC IMPROVEMENT PROJECTS OF ANDN FOR THE CITY; FIXING THE FORM, DENOMINATION AND CERTAIN OTHER FEATURES OF SUCH BONDS; AND PROVIDING FOR THE SALE OF SUCH BONDS" was offered and carried over to the next meeting for consideration.