SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Expressing the Intent of the Town to be Reimbursed for Certain Expenses Relating to the Construction of Certain Public Improvements
Department
DEPARTMENT: Finance
Presenter
PRESENTER(S): Sara Hancock, Director of Finance
end
Time
TIME ESTIMATE: 15 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY: N/A
Policy
POLICY ISSUES:
Per Council direction, this resolution allows the process of Certificates of Participation (COPs) issuance for the Public Safety expansion and mine mitigation projects to proceed.
Recommendation
STAFF RECOMMENDATION:
Staff recommends approving the resolution.
Body
SUMMARY/KEY POINTS
Council directed staff to proceed with the issuance of Certificates of Participation (COPs) for the Public Safety building expansion, Town Center mine mitigation, and Erie Community Center mine mitigation.
• This resolution allows the projects to begin the contracting and encumbrance process while the COPs are issued.
• The resolution provides for the reimbursement of certain costs incurred by the Town prior to the receipt of any proceeds of the financing mechanism.
• Town staff will bring initial agreements for these projects to Council for approval, referencing this resolution. This resolution will allow the appropriation of the financing ahead of issuance.
• This resolution only authorizes the reimbursement of funds and currently does not appropriate any funds.
BACKGROUND OF SUBJECT MATTER:
The Town of Erie Town Council and staff have engaged in ongoing discussions on the funding mechanism for both the Erie Public Safety Building expansion, as well as Town Center and Erie Community Center (ECC) mitigation projects. After the Council’s September retreat, Council gave staff direction to proceed with the issuance of Certificates of Participation (COPs) for these projects. The total estimated cost for the Public Safety building is $40 million, Town Center mitigation is $5.1 million, and the ECC mitigation is $2 million. The total estimated COP issuance will be $47.1 million.
The 2025 Budget currently includes $35,518,368 in the Police Facilities Impact Fund for the Public Safety Building expansion, to be funded by the debt issuance of the COPs. Additionally, the 2026 Capital Budget includes mine mitigation for both the Town Center and ECC projects. While the issuance process begins, facilitated by the Town’s financial advisors and bond counsel, this resolution provides that the Town can proceed with Requests for Proposals, contracting, and spending for these projects. The funds will then be reimbursed at the time of issuance to the corresponding project and the remaining balance available for the completion of the project. This is typical practice when issuing debt, as it allows the projects to proceed in a timely manner while the issuance is completed.
The Town has sufficient cash on hand to fund any expenses ahead of the issuance and will account for those in the supplemental budget, if the appropriation is not yet in place. The Public Safety building has sufficient budget appropriation, however the Town Center and ECC projects are scheduled for 2026. If either of these projects need 2025 appropriation to proceed, this resolution will ensure that those funds will be reimbursed to the Town with the issuance of the COPs.
priorities
TOWN COUNCIL PRIORITY(S) ADDRESSED:
☐ Attractive Community Amenities
☐ Engaged and Diverse Community
☐ Prosperous Economy
☐ Well-Maintained Transportation Infrastructure
☐ Small Town Feel
☐ Safe and Healthy Community
☒ Effective Governance
☐ Environmentally Sustainable
☒ Fiscally Responsible
attachments
ATTACHMENT(S):
1. Resolution