REPORT TO COUNCIL
SUBJECT
Title
A. Discussion and Potential Actions Related to Proposed November 2024 Ballot Measure Authorizing the Issuance of General Obligation Bond Debt to Fund Public Infrastructure; Such Actions to Include the Following:
1. Adoption of a Resolution of Necessity
2. Introduction of an Ordinance Ordering the Submission of a Measure Incurring Bonded Indebtedness to the Voters at the November 2024 General Municipal Election
3. Direction on a Draft Expenditure Plan to be Included with the Measure
B. Discussion and Council Direction on a Proposed Charter Amendment Regarding Public Works Procurement [Charter Section 1310] to Update the City's Public Works Bidding and Contracting Authority, Allow for Design-Build Projects and Implement Other Technical Changes
Report
BACKGROUND
Unfunded Capital Needs
Over the last several years, the need for capital infrastructure investment has been identified and discussed as part of the budget and the City Council's annual Priority Setting Processes. While the City's utility infrastructure is well funded, there are significant funding gaps in other areas. For capital infrastructure where the General Fund is the primarily funding source, the City has relied on a pay-as-you-go approach using funds set aside in the Capital Projects Reserve. This reserve is funded by General Fund surplus funds at the end of a fiscal year and is insufficient to address the City's considerable infrastructure needs.
As part of the development of the FY 2024/25 and FY 2025/26 Biennial Capital Budget, over $600 million in City infrastructure needs were identified where the General Fund would be the primary funding source. This amount included the most immediate needs over the next five years and did not fully account for all unfunded needs in the City. In 2024 alone, the City received over $2700 million in infrastructure requests from the various departments with only $24 million available in the Capital Projects Rese...
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