City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 7, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of an Ordinance to Authorize the Issuance of General Obligation Debt Instruments. [ROLL-CALL VOTE]
BODY
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ISSUE: Consideration of an ordinance to authorize the issuance of General Obligation Debt Instruments to finance City and Schools capital projects and thereby establish a short-term funding program.
RECOMMENDATION: That City Council pass on first reading on February 14, and schedule for second reading, public hearing and final passage on Saturday, February 25 an ordinance (Attachment 1) authorizing the issuance of General Obligation Debt Instruments in an amount up to $100 million principal amount outstanding at any one time, which amount may be borrowed, repaid, and reborrowed, to manage the short-term cash flow needs of the City's Capital Improvement Program.
BACKGROUND: The proposed ordinance authorizes the issuance of General Obligation Debt Instruments in an amount up to $100 million principal amount outstanding at any one time, including lines of credit that may be revolving and therefore allow amounts thereunder to be borrowed, repaid, and reborrowed, for the purpose of financing capital improvements for which bond proceeds have been appropriated pursuant to the City's Capital Improvement Program based on cash flow needs. This short-term funding program is expected to provide low-cost flexibility in the management of cash flow and support of ongoing construction of capital projects.
Since actual construction cash drawdowns may not occur for more than a year from the allocation of resources and establishment of a contract, establishing a short-term borrowing credit facility (in lieu of bo...
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