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HomeMy WebLinkAboutItem 05 Capital Street Bond AGENDA ITEM SUMMARY Meeting Date: 2/5/2024 Meeting Type: Regular Meeting Staff Contact/Dept.: Jeff Paschall/DPW Staff Phone No: 541-726-1674 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Maintain and Improve Infrastructure and Facilities ITEM TITLE: CAPITAL STREET BOND ACTION REQUESTED: Adopt a Resolution referring Street Capital Bond to Springfield voters. ISSUE STATEMENT: In 2018, voters approved a 5-year $10 million street bond which allowed for the preservation and rehabilitation of 4.7 miles of collector and arterial streets. All of the approved projects were completed from 2019 to 2022. However as of the most recent street condition report there were just over 15 miles of collector and arterial streets classified as fair, approximately 15.5 miles classified as poor. This equates to an estimated need of $40.5 million for preservation and $125 million to $187 million for reconstruction. ATTACHMENTS: 1. Resolution Referring Bond Measure to Voters 2. Exhibit A: Ballot Title Springfield Street GO Bond, 2024 3. Exhibit B: Street Bond Priority Project List 4. Exhibit C: Notice of Receipt of Ballot Title DISCUSSION/ FINANCIAL IMPACT: At the January 22, 2024 City Council work session staff received direction to prepare for Council consideration a Resolution referring a $20,000,000 general obligation bond to Springfield voters to fund a priority list of street repair projects. This Ballot Measure would be voted on in the May 21, 2024 Election. The referral resolution is included here as Attachment 1. Exhibit A to the Resolution is the Ballot Title as proposed. The Ballot Title includes the ballot Caption not to exceed 10 words, the ballot Question not to exceed 20 words (excluding statutorily required language), and the ballot Summary not to exceed 175 words. The Ballot Title includes the top six priority street preservation projects to be paid for with the GO bond, as well as the estimated tax rate per $1,000 of assessed value (AV) and what that annual cost increase in property taxes would be on the average home in Springfield. The Ballot Title Summary also references the Referral Resolution, which includes a longer list of priority projects should costs come in under estimate or the City encounter unforeseen cost escalation or discover more costly reconstruction requirements which would exceed the intent and balance of funds available in delivering a higher priority project. CITY OF SPRINGFIELD, OREGON RESOLUTION NO. ___________ A RESOLUTION REFERRING TO THE VOTERS OF THE CITY A BALLOT MEASURE AUTHORIZING THE ISSUANCE OF A MAXIMUM OF $20,000,000 OF GENERAL OBLIGATION BONDS TO FUND PROJECTS TO FIX STREETS WHEREAS, ORS 287A.050 authorizes the City to issue general obligation bonds to finance capital costs upon approval by the electors of the City; WHEREAS, the City currently has no funded street repair and preservation program, there is an existing backlog of approximately $45 to $50 million in street repairs, and existing funding is inadequate to address this backlog; WHEREAS, fixing streets through preservation and repair in the near future is less costly than street reconstruction later on; WHEREAS, the City Council has determined that the City will benefit from issuing general obligation bonds to finance projects to fix streets and reduce the backlog of street repairs; WHEREAS, street projects funded by this bond measure would include slurry sealing, pavement overlays, restriping, crack sealing, reconstruction, related improvements, and other projects intended to extend the useable life of the roadway; WHEREAS, the City Council has determined that the streets listed in Exhibit B are the highest priority for repair and, based upon the City’s current cost estimates, the City anticipates constructing the first eight listed projects using bond proceeds; WHEREAS, no new streets would be constructed, or new City staff hired as a result of this bond measure; WHEREAS, if approved by the electors of the City, the City will annually prepare and publish a report showing projects completed using bond funds; WHEREAS, the City Council has determined to proceed with referring to the electors of the City a ballot measure to authorize the issuance of $20,000,000 in general obligation bonds for the purposes described above; WHEREAS, ORS 287A.050 limits the amount of general obligation bonds for street improvements and certain other types of general obligation bonds to three percent of the real market value of taxable property in the City, and issuing the bonds will not cause the City to exceed this limit; WHEREAS, the measure is expected to cost $0.74 per $1000 of assessed value each year for not more than five years, and is estimated to cost the average Springfield homeowner approximately $135 per year; and WHEREAS, the City anticipates expending funds to begin fixing streets prior to issuance of the bonds, and therefore wishes to declare its official intent to reimburse itself from the bond proceeds, which may be issued in more than one series, for any funds spent on the streets described in this measure under Section 1.150-2 of the U.S. Treasury regulations, Attachment 1 Page 1 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1: The City Council hereby refers to the voters of the City of Springfield at the Election on May 21, 2024 a measure authorizing the issuance of a maximum of $20,000,000 in principal amount of general obligation bonds for the purpose of fixing streets. Section 2: The City Council hereby adopts and certifies the Ballot Title for this measure as attached in Exhibit A. Section 3: If approved by the voters at the Election on May 21, 2024, the proceeds from the bond measure will be used only to pay capital costs to fix streets as described in Exhibit B to this resolution and to pay bond issuance costs. Section 4: If approved by the voters at the Election on May 21, 2024, the City will prepare and publish periodic reports as street projects are completed to document the use of bond proceeds. Section 5: Pursuant to ORS 250.275(5) and 250.285, the City Recorder as the City Elections Officer shall publish in the next available edition of the Register Guard a notice of receipt of the ballot title including notice that an elector may file a petition for review of the ballot title pursuant to ORS 250.296 not later than the seventh business day after the title is filed with the City Elections Officer. The notice shall be in substantially the form attached to this resolution as Exhibit C. Section 6: The City Recorder, as the Chief Elections Officer of the City, is directed to submit to the County Clerk for Lane County, Oregon, a statement of the ballot measure, a certified copy of this Resolution and the Ballot Title, and all other necessary information so that this measure may appear on the ballot for the May 21, 2024 Election. Section 7: The City Manager, the City Recorder, the City Finance Director, and the City Attorney, and each of them individually, are hereby authorized and directed to prepare and file an explanatory statement for this measure, and to take such other action as is necessary or appropriate to carry out the purposes and intent of this Resolution in compliance with the applicable provisions of law. Section 8: The City hereby declares its official intent to reimburse itself with proceeds of bonds, which may be issued in more than one series, for any amounts the City spends for the purpose of fixing streets described in the measure. Section 9: This Resolution will take effect immediately upon adoption by the Council. ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____, by a vote of _____ for and ____ against. ATTEST: __________________________ City Recorder Attachment 1 Page 2 of 2 {00031939:3} Exhibit A - Springfield Streets G.O. Bond, 2024 Caption (10 words) Authorizes general obligation bonds to fix streets. Question (20 words) Shall City of Springfield issue $20,000,000 in principal amount of general obligation bonds to fix deteriorating streets? If the bonds are approved, they will be payable from taxes on property or property ownership that are not subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution. Summary (175 words) If this measure is approved, City will use bond proceeds to fix streets. Bond proceeds will only be used to fix existing streets and pay bond issuance costs. The City expects to fix the streets listed below with bond proceeds. See Springfield Resolution 2024-XX for a full list of streets that could be fixed using bond proceeds if funds are available. Harlow Road: I-5 to Pioneer Parkway/MLK Jr. Parkway roundabout • Aspen Street: Menlo Loop to Centennial Boulevard • ‘G’ Street: 10th Street to 23rd Street • 36th Street: Main Street to Commercial Avenue • Daisy Street: South 51st Place to Bob Straub Parkway • 58th Street: Main Street to Thurston Road The City will publish periodic reports to document completed bond projects. The City expects to levy taxes for five years to repay the Bonds. The estimated rate is $0.74 per $1000 of assessed value, or about $135 per year ($11.25 per month) for the average Springfield homeowner. Exhibit A Page 1 of 1 Attachment 2 Page 1 of 1 Exhibit B – Street Bond Priority Project List • Harlow Road: I-5 to Parkway Roundabout • Aspen Street: Tamarack Street to Centennial Boulevard • ‘G’ Street: 10th Street to 23rd Street • 36th Street: Main Street to Commercial Street • Daisy Street: 51st Street to Bob Straub Parkway • 58th Street: Main Street to 58th St./Thurston Rd. Roundabout • Darlene Avenue: Dornoch St. to Hartman Ln. • ‘F’ Street: N. 51st St. to N. 54th St. • 66th Street: Main St. to Thurston Rd. Exhibit B Page 1 of 1 Attachment 3 Page 1 of 1 {00031942:1} NOTICE OF RECEIPT OF BALLOT TITLE Notice is hereby given that a ballot title for a measure referred by the City of Springfield has been filed with the City Elections Officer on February 5, 2024. The ballot title caption is “Authorizes general obligation bonds to fix Springfield streets.” A copy of the ballot title is available from the City’s Elections Officer. An elector may file a petition for review of this ballot title in the Lane County Circuit Court no later than 5:00 p.m., February 14, 2024 under ORS 250.296. ______________________________________ __________________________ Signature of City Elections Officer Date signed AJ Nytes, City Recorder This legal notice is to be published by the City Elections Officer in the Register Guard, or in another newspaper of general distribution within the City. Exhibit C Page 1 of 1 Attachment 4 Page 1 of 1