Title
Approval of an Ordinance Amending 2016 Parks General Obligation Bond Anticipation Note
Recommended Action
Committee Recommendation:
Move to approve the Ordinance Amending the 2016 Parks General Obligation Bond Anticipation Note (BAN) on first reading and forward to second reading.
City Manager Recommendation:
Move to approve the Finance Committee Recommendation.
Report
Issue:
Whether the City should amend Ordinance No. 7012 for the 2016 Parks General Obligation Bond Anticipation Note (BAN) to expand the authorized use of grant proceeds. The current ordinance limits use of the BAN for park acquisition only.
Staff Contact:
Paul Simmons, Director, Parks, Arts and Recreation Department, 360.753.8462
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Background and analysis has not changed from first to second reading.
In 2016, the City Council authorized a $10 million Parks Bond Anticipation Note (BAN) to purchase property for parks. The BAN is short term financing that is usually paid off with a longer-term bond. These funds, by ordinance are to be used for parks land purchases.
Since 2016, the City has used approximately $8.8 million of BAN funds to purchase property for parks including LBA Woods, Kaiser Woods, and West Bay Woods. Subsequently, the Washington Recreation and Conservation Office awarded parks $1.7 million in grant funding to reimburse a portion of those purchases.
The Olympia Parks, Arts and Recreation Department would like to use the grant reimbursement to help fund several important park development projects that have current funding needs including the Percival Landing Bulkhead, the Woodruff Park sprayground, Grass Lake Nature Park trail, and community park development. In order for the grant reimbursement funds to be used for these development projects, Ordinance No. 7012 which authorized the 2016 Parks General Obligation Bond Anticipation Note (BAN) will have to be amended to allow reimbursed BAN funds to be used for park development projects. Note that all remaining BAN funds, Voted Utility Tax funds, and Non-Voted utility tax funds will continue to be used exclusively for park acquisition.
Neighborhood/Community Interests (if known):
N/A
Options:
1) Move to approve the Ordinance Amending the 2016 Parks General Obligation Bond Anticipation Note (BAN) on first reading and forward to second reading.
2) Do not move to approve the Ordinance Amending the 2016 Parks General Obligation Bond Anticipation Note (BAN) on first reading and forward to second reading. This may result in delays to planned park development projects.
3) Provide guidance to staff on another course of action.
Financial Impact:
Provides $1.7 million of BAN funding for parks improvements and development.
Attachments:
Ordinance
Ordinance No. 7012