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HomeMy WebLinkAboutweekly newsletter Date: April 26, 2013 To: Mayor & City Council From: Mark A. Rohloff, City Manager WEEKLY NEWSLETTER Subject: 1.FEDERAL ACTIONS & IMPACT ON UPCOMING BORROWINGS : Over the past month, there have been a number of questions raised about the imp act of the federal sequester on local finances. I previously reported to the Council that the federal sequester may have an impact on our Build America Bonds (BAB), which were borrowed at taxable rates with a reimbursement from the federal government. Th e concerns I raised at that time remain today and we are still pursuing our BAB interest reimbursements. Recently, rating agencies have been commenting on the impact of the federal sequester, and they have concluded that the federal sequester will have limited impact nationally. At the same time, a Moody’s special report cited MSA’s that are dependent upon federal procurement contracts, including the Oshkosh-Neenah MSA. Even though the federal procurement contracts are outside the city’s control, it is c lear that the rating agencies will make this an issue in our upcoming ratings call. Specifically, Moody’s has made a comment that states, “Should the region’s economic fundamentals materially weaken, local government budgets may be pressured”, suggests th at while these negative actions may not immediately translate into a negative rating action, they will require additional monitoring on Moody’s part. With the recent announced layoffs at Oshkosh Corporation, these are certainly issues that will come up over the course of our rating call. Council may also recall that last year, Moody’s put a negative outlook on our storm water utility due to our increasing debt in this area. While they have been encouraged by the Council’s commitment to raise rates to k eep up with our debt, this will be an ongoing concern. Council recently approved a 29% increase in our storm water rates to maintain our debt coverage ratios for our upcoming borrowing. We do not know if Moody’s will continue to have concerns about our revenue capacity given the fact that we raise d rates to meet debt requirements so close to a borrowing request. However, we believe that we are prudently managing our debt and increasing our rates sufficient to cover this debt. Staff anticipates that this will be a significant issue for Moody’s as they review our storm water financial statements in the coming weeks. If you have any questions regarding this matter, please contact Finance Director Peggy Steeno. CITY HALL DETENTION POND UPDATE 2.: The construction of the underground storm water storage tank beneath the Oshkosh City Hall parking lot has reached its first milestone. With the preparation of the 25-foot excavation now complete, the area is being prepared for the construction of the concrete tank. The base of the detention system will be constructed over the course of the next three weeks. Three separate concrete pours need to be made. The first pour is th scheduled for today, April 26. Wall, column, and beam concrete placement will take place alm ost daily for the month of May. Weekly Newsletter April 26, 2013 Page 2 UPDATE ON CENTRAL GARAGE CONSTRUCTION PROJECT 3.: As previously reported, staff continues working with Kueny Architects to finalize the design for the Central Garage. We are planning for the bid opening within the next couple of weeks. Because this work will be done over a couple of years, financing of the project will be done in phases. We have previously borrowed for the initial phases of the project, and these funds will get us through the summer. A borrowing later this year will cash flow the project into 2014. Future borrowing will be needed, but we will wait to see how work progresses before we do any additional borrowing in 2014 or 2015. Please keep this in mind as we pla n future borrowings for this phased project. If you have any questions regarding the project, please contact Public Works Director David Patek. FIRE DEPARTMENT RECEIVES GRANT 4.: The Oshkosh Fire Department received word today that they were successful in r eceiving a fire grant for replacing their heart monitor/ defibrillators. The total project cost is $314,000, and this grant covers 80% of the cost, or $251,200, leaving the city’s cost for this project at $62,800 for the 20% local match. The good news is that we do not need to borrow the full amount for this project this year, saving $251,200 in the Capital Improvements Program. The current heart monitors were not going to be supported after this year by the company, and the new units will have some upgraded features to improve the quality of care that our Fire Department provides. If you have any questions concerning this grant, please feel free to contact Fire Chief Tim Franz. LAKEFLY LITERARY CONFERENCE 5.: The Lakefly Literary Conference is going to be held May 10-11, 2013 at the Oshkosh Convention Center. The event is funded by the Oshkosh Public Library, Friends of the Oshkosh Public Library, and Oshkosh Community Foundation, in partnership with the Oshkosh Area Writers Club and the Wisconsin Writers Association. As part of the 2013 event, The Friends of the Library are sponsoring an appearance by Wisconsin writer/musician Michael Perry and his band, the Long Beds, on Friday, May 10, at the Grand Opera House, with proceeds benefitting the Grand. The conference is geared toward beginning and established writers of all genres from throughout the state to foster creativity and literacy, recognize state and local authors (including self-published), and build on Oshkosh’s growing reputation as the “Ev ent City.” Our emphasis is on the craft and business of writing, as opposed to creating opportunities for readers to meet popular authors. Many of our 2013 speakers are accomplished writers but they are also dynamic teachers. Speakers this year include 20 13 Wisconsin Poet Laureate Max Garland, screen writer James Strauss (House, Deadwood), literary writers/teachers Larry Watson and Mike Magnuson, Oshkosh author Jess Riley, DC Comics writer Bill Messner-Loebs, social media expert Terra Fletcher, Christian author Lisa Lickel, nationally- recognized horror writer Mort Castle, CNN editor/novelist John DeDakis, and others. In addition to a book fair featuring local/state authors and other vendors, an editor from Prism Book Group th will be taking pitches for romance nov els throughout Saturday, May 11. For more information, visit the website at www.lakeflylit.org. SECTION OF JACKSON STREET TO BE CLOSED STARTING MONDAY 6.: Beginning th Monday, April 29, a section of Jackson Street, between Church Avenue and Algoma Boulevard, will be closed for up to five days. The closure is necessary due to a storm sewer pipe being constructed along Jackson Street, which will work in conjunction wit h the underground storm water storage tank being installed beneath the City Hall parking lot. During the course of the closure, a detour will be posted. Weekly Newsletter April 26, 2013 Page 3 DEPARTMENTAL REPORTS & UPDATES 7.: Other items I’m enclos ing with today’s Newsletter include the latest issue of the FOCUS newsletter, which features an article on state income tax. I am also enclosing the 2012 Annual Report from the Oshkosh Fire Department. th Insofar as minutes are concerned, I’m enclosing the minutes of the January 17 Storm Water th Utility Committee meeting, and the minutes of the April 17 Transit Advisory Board meeting. I am also enclosing a notice of a neighborhood meeting for the George Washington Monument st Landscape Plan, which takes place next Wednesday, May 1, at 6:00 p.m., at the Oshkosh Seniors th Center. Another informational meeting will be held on Thursday, May 16, at the Seniors Center, concerning the plans for the renovation of the North Building at the Seniors Center site. I am also enclosing the invitation to next Friday’s Transportation Plunge. If you haven’t already, please let Jackie know if you’ll be attending. Another item I’m enclosing is the announcement of a contest to be held to name the two female otters at the Menominee Park Zoo. The last item I’m enclosing is a schedule from the League of Wisconsin Municipalities of workshops to be held for new city officials. All Council Members are encouraged to attend to brush up on your knowledge of local government. These meetings are very informative and a travel to Kimberly (closest) is well worth it. Please let Jackie know if you plan to attend and she’ll make all arrangements. th 8.UPCOMING MEETINGS : Meetings I have scheduled for the week of April 29 include the th following: On Monday, April 29, at 9:00 a.m., I will be meeting with Transportation Director Chris Strong regarding the parking lot rehabilitation project at Riverside Park. At 1:30 p.m. on Monday, I am meeting with Community Development Director Allen Davis to discuss the River Walk capital improvement projects for 2013 and beyond. At 5:00 p.m. on Monday, I will be participating in a presentation regarding the state budget, which is being sponsored by Citizens for a Strong Oshkosh. I will be joined by Todd Berry, President of the Wisconsin Taxpayers Alliance, and representatives from Winnebago County, the Oshkosh Area School District, and Fox Valley Technical College. At 12:00 noon on Tuesday, Wednesday and Thursday of the week, I will be at tending employee recognition lunches for Fire Department employees. I will also be th hosting a similar event on Friday at City Hall for City Hall employees. On Tuesday, April 30, at 2:00 p.m., I will be attending a meeting of the Business Success Center Board. On Wednesday, st May 1, at 7:30 a.m., I will be attending a meeting at which the results of the Targeted Industry Study that is being conducted by the Economic Development Marketing Group will be released. At 5:00 p.m. on Wednesday, I will be attending the reception for inve stors of the new downtown nd hotel. I will also attend the 10:00 a.m. ribbon cutting on Thursday, May 2. On Thursday, at 5:00 p.m., I will be the Master of Ceremonies at the retirement party for Kristi Bradish of the Winnebago County Confl ict Resolution Center. If you have any questions regarding my attendance at any of these meetings, please do not hesitate to contact me. MAR/jdc Enclosures