Minutes 03/19/1996 - Laserfiche WebLink

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March 19, 1996 Capital Improvement Program and Debt Management The 1996 Capital Improvement Program (CIP) funds education, street and water utility infrastructure improvements, neighborhood projects, Vision 2005, and cultural and recreational activities. A total of $28.1 million in projects are proposed in the CIP which leverages non-local sources such as federal grants, community development block grant funds, state funding and stormwater revenues to remain within our self-imposed limit of $8 million of new general obligation debt annually. Last year, concerned about the increased cost of debt service, the City Council lowered the debt limit to $8 million from $10 million. This has proven to be a very prudent strategy for keeping the level of debt repayment affordable. Four prior authorizations totaling 52.3 million of general obligation bonds were combined in January 1996. A portion of these bonds, $40 million, were issued in February 1996 at a interest rate of 5.01%, the city's lowest interest rate in 20 years. The annual debt service requirements on outstanding general fund debt totals $13.4 million and represents 10% of total operating revenues (g~neral and debt servi~e funds). The following chart projeots future debt service payments assuming the $8 million ceiling and future bond issuances every two years. Debt Service Projection through 2020 l$.000,000 [6.0O0.O0O 14.000.000 12,000,000 10.000.000 8.000.000 6.000.000 4.000.000 2.000,000 0 96 97 98 99 0 I I I [ I I I I I I 7 8 ~9 10 11 12 13 14 15 16 I7 18 19 20 Fiscal Year Economic Development Thanks to the focused efforts of many people, positive results are occurring in the economic development area. Much enthusiasm in the revitalization of our city has resulted from the ideas and energy of the Vision 2005 committees. Portsmouth's long-range plan provides direction and framework for economic growth into the 21st century. Several major projects are already underway, will commence soon or have funding in place awaiting the start of construction. The new, state-of-the-art I. C. Norcom Migh School is under construction. High Street Landing, the new ferry boat dock and inlet, is ready for construction and will soon become an inviting gateway to the city. Additional activities, on or near High Street, such as the Children's Museum of Virginia, Admiral's Landing condominiums, restaurants, art galleries and shops are essential elements for spurring development around this major thoroughfare. The Effingham/Elm, Northside Neighborhoods and Midtown Committees each have significant plans for these sections of the city and have funding identified in the CIP for moving those projects forward. This budget proposes to continue building on the strength of the last four years in which the city has realized $65 million in new business investment, 1,855 new jobs and 80 new and expanding businesses. These new businesses and jobs provide the future capacity for increasing total revenues generated from property taxes, sales taxes and other local charges, with minimal ~ncreases in the rates on which the revenues are based.