HomeMy WebLinkAbout21. 22-152APRIL 12, 2022 22-152 RESOLUTION
(CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AMENDMENT TO 2022 CAPITAL IMPROVEMENT
BUDGET TO INCREASE FUNDING FOR PARKS
ADMINISTRATION/OPERATIONS BUILDING
INITIATED BY: FINANCE DEPARTMENT
WHEREAS, the Common Council has adopted the 2022 Capital Improvement
Budget, which is on file in the Office of the City Clerk and available for public inspection;
and
WHEREAS, the 2021 Capital Improvement Budget included $1,500,000 and the
2022 Capital Improvement Budget included $5,100,000 for the Parks
Administration/Operations Building Project; and
WHEREAS, City staff opened bids for the project and the cost of the project
(including the construction bid of $8,943,500) is now estimated to be $10,200,000; and
WHEREAS, the City Council requested staff to consider options to fund the
increase in prices for the project; and
WHEREAS, staff recommends increasing the planned issuance long term debt in
2022 from $5,100,000 to $8,700,000.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the 2022 Capital Improvement Program, on file in the City Clerk's Office, is
hereby amended to increase the issuance of long term debt by $3,600,000 within Account
Number 0323-0071-5302-63115 – Equipment Fund, Proceeds from Sale of Bonds; and to
increase the expenditure in Account Number 0323-0610-7214-63115 – Equipment Funds,
Parks Administration – Buildings by the same amount.
TO: Honorable Mayor and Members of the Common Council
FROM: Russ Van Gompel, Director of Finance
DATE: April 7, 2022
RE: Approve Amendment to 2022 Capital Improvement Budget to increase funding
for Parks Administration/Operations Building
BACKGROUND
Attached is a resolution to approve Amendment to 2022 Capital Improvement Budget to increase
funding for Parks Administration/Operations Building. The 2022 Capital Improvement included
$5,100,000 for the construction of a new Parks building with the funding being provided by the
issuance of new long-term debt. In addition, the 2021 Capital Improvement Plan included
$1,500,000 of debt to help fund the preliminary costs of designing and preparing bids for the
construction of the building. This brought the total for the project to $6,600,000.
The City opened bids for the construction of the new Parks Administration/Operations building
and the low bid came in at $8,943,500. The total cost of the project, including design costs, site
preparation, and construction management is now $10,200,000.
ANALYSIS
To fund the new total project cost, I am recommending that the City increase the plan to issue
debt by $3,600,000 to $22,950,000. The City Council will be presented a list of projects to be
financed by the issuance of $22,950,000 of debt at the April 26, 2022 City Council meeting.
FISCAL IMPACT
The requested additional debt issuance of $3,600,000 will increase the tax rate in the first 10 years
of debt payments by $0.04 per thousand and decrease slight in the remaining ten years.
RECOMMENDATION
Staff recommends that Council approve the attached Resolution.
Approved,
Mark A. Rohloff
City Manager