2004-05-12 Budget Study - Laserfiche WebLink

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Session 1920 May 12, 2004 for total rehabilitation, including new front facade. We cannot afford any of those choices currently, at least not this year. Mr. Ollendorff explained that there are various kinds of bond issues. One is borrowing against sales tax revenue. If the voters voted it in, it continues, and the City can continue to borrow against that source of revenue. The more common option is for voters to vote in favor of a property tax-based bond issue. In this instance, there must be a new vote for each bond issue. For example, if the voters allow the City to borrow $2 million to preserve City Hall and $500,000 for the bath house, and allow the City to borrow $2.5 million to attach the necessary property tax to pay off the bonds; that requires about a 12 cent property rate to pay off $2.5 million dollar bonds. The voters would vote for this increased property tax rate. The School District just did the same thing on Proposition B, which was a new bond issue, so the voters had to decide. It was not an increase, if voters voted "yes", the amount remained the same. If they voted "no", the taxes would have decreased. It is accurate to say "no tax increase if you vote yes." This is not a "no-tax increase" because a property tax has not been levied for the bond issue. 4010 - The Library The Library Board recommended the draft budget and the City Manager had no questions about the figures. The number of library-users has increased considerably by opening facilities to non-resident users. 7000- The Central Garage No changes reported. 2700 - University City Loop Parking Garage The City Manager reported the garage collects enough revenue to pay the annual operating expenses, with some left over to direct towards the debt. There are several different loans: the one fully-covered by the rent revenue is the one from the bond issue, one from the general fund, one from the IDA, and the City is nowhere near raising enough revenue to pay-off the loans the City paid for this project. Councilmember Wagner asked if the garage was used and if there were statistics to show how it is used, and Mr. Ollendorff said that he would obtain a report. Mayor Adams said the only way to increase revenue was to increase fees, and that might decrease usage. C-104 - C111: TIF, LCRA, and IDA The only budgeting in these pages is shown on C-111. Mr. Ollendorff explained that last year the City asked IDA to contribute $192,000 towards Phase One of the Olive Enhancement and the subsequent year of budgeting, $72,298 is to be directed towards Page 8