Subject:
Title
Consider a reallocation of funds from a direct bank loan related to the new high school construction project
Body
Presented By: City Staff
Recommendation and Review
Due to the COVID-19 pandemic, the city suspended the construction on the new high school for up to one year. The city subsequently did not borrow construction funds through a planned March 2020 public bond offering. A portion of this bond issue was intended to reimburse the city for construction costs already funded using city reserves. This will reallocate funds from a bank loan to reimburse the city for costs previously committed to the project. Staff believes it is in the city’s best interest to replenish its reserves during this time of uncertainty in the city’s revenue collections brought on by the COVID-19 public health emergency.