2. What is a G.O. Bond?
General Obligation bonds are a form of debt financing
Used to finance capital projects
Payable from property taxes
Approved by voter referendum
Backed by a pledge of the City’s “full faith and credit”
Last G.O. Bond program approved in 1999

3. 1999 G.O. Bond Program $92 million bond program
Approved by voters on November 2, 1999
Parks & Beaches
Fire Safety Facilities & Equipment
Neighborhood Improvements
68.5%
approval
56.9%
54.2%
$9.7 million
$24.8 million
$57.9 million

4. Of 62 total projects, 57 are completed or in progress
1999 G.O. Bond Program
Of 62 total projects, 57 are completed or in progress
4 Fire Safety Facilities Projects
Fire Station #2 Renovations
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5. Of 62 total projects, 57 are completed or in progress
1999 G.O. Bond Program
Of 62 total projects, 57 are completed or in progress
North Shore Youth Center
31 Parks & Beaches Projects
4 Fire Safety Facilities Projects
Fire Station #2 Renovations
2018 GO
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6. Of 62 total projects, 57 are completed or in progress
1999 G.O. Bond Program
Of 62 total projects, 57 are completed or in progress
22 Neighborhood Improv. Projects
Lake Pancoast
North Shore Youth Center
31 Parks & Beaches Projects
4 Fire Safety Facilities Projects
Fire Station #2 Renovations
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7. 1999 G.O. Bond Program 5 remaining projects
Approximately $28 million of unfunded needs
Project
1999 Bond Allocation
Unfunded Needs
La Gorce Neighborhood Improvements
$1.1 M
$14.0 M
North Shore Neighborhood Improv.
$4.2 M
$10.0 M
La Gorce Island Improvements
$200K
$1.0 M
Public Works Facility
$1.2M
$1.5 M
Parks Maintenance Facility
$565K

8. 2018 G.O. Bond Program Critical infrastructure needs in the community
Public Safety
Parks/Quality of Life
Infrastructure/Resiliency

9. Additional Interest $500M Bond
2018 G.O. Bond Program
Current funding for capital projects is very limited
Still at historically low interest rates
Rising rate environment
Interest Rate
Additional Interest
$300M Bond
Additional Interest $500M Bond
4.0% –
4.5%
$32.0 M
$53.4 M
5.0%
$65.6M
$109.3 M

10. 2018 G.O. Bond Program Debt Capacity Current credit rating is AA+
Changes in credit rating methodology
Moody’s report
Potential downgrade(s) if climate change effects not addressed
Current credit rating is AA+
If downgraded to AA-, additional interest of $7 to 8 million
Debt Capacity
Can issue G.O. debt up to 15% of assessed property value ($6.4B)
Currently at 1.1% of debt limit ($51.4M)
Best practice: 6 to 8%

11. Impact to Property Taxes
Depends on bond program amount
Considering $300 to $500 million program
For every $100K of taxable value: $60 to $100 annually
Timing of bond issuances
Debt service would increase in steps over time
Implementation would be spread over 7 to 10 years
Example: $100M issued every 2 years plus refinancing of existing bonds

12. Impact to Property Taxes
Potential millage rate changes would be phased-in over time (assumes $300M bond and $100M issuances every 2 years)
Additional millage from G.O. Bond
Assuming no change in current millage rate

13. Projected Timeline

14. Identify Potential Projects
February/March
Initial project list totaled $1.1 billion
List compiled from:
Input from City Commission
Various master plans (ex. North Beach Master Plan)
City Boards & Committees (ex. Parks & Recreation Advisory Board)
Staff recommendations
Projects and costs continue to be refined over time

15. Project Prioritization
April/May
Commission workshop on April 5th
Reduced list from $1.1 billion to about $700 million
Community input to help rank/prioritize projects
Four community meetings
Pop-up events
Neighborhood meetings
Online tools:
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16. Commission Review & Decisions
June/July
Mayor’s G.O. Bond Advisory Panel created
Incorporate community input re: project priorities
Discussion at Budget Workshops and other meetings
By July 25th: finalize:
Project list
Amount of overall bond program
Number and amounts for ballot measures

17. August/September/October
Public Education
August/September/October
Robust public engagement during three months prior to vote
Increase voter awareness
Speaker’s Bureau for public meetings
Educational materials
Voter referendum on November 6th
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18. Projected Timeline

19. Project Prioritization Exercise
We Want Your Input!
Project Prioritization Exercise
Available on website:
Projects organized by 3 areas:
Public Safety
Parks & Beaches
Infrastructure
Rate projects on 5 point scale
5 High priority
4 Medium priority
3 Neutral
2 Low priority
1 Not a priority
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