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CITY of RAPID CITY Agenda Item Summary |
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Meeting Date: 4/15/2015 |
Commission, Board or Committee: N/A |
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Staff Contact: Joel Landeen, City Attorney |
PW Committee or L&F Committee: Legal & Finance Committee |
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Petitioner: N/A |
City Council 1st Reading: 4/20/2015 |
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Location: N/A/ |
City Council 2nd Reading: 5/4/2015 |
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Agenda Title: |
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Introduction and First Reading of Ordinance No. 6046 an Ordinance Separating the City's Vision and Capital Improvement Accounts into Separate Funds by Amending Chapter 3.16 of the Rapid City Municipal Code. |
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Summary: |
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This ordinance reverses the ordinance amendment approved last fall which unified the CIP and Vision Funds into a single fund with two separate accounts. This ordinance would address the concerns of those people who believe the previous ordinance was an attempt to use CIP monies to fund the Civic Center project. However, this belief is a misconception. The previous ordinance still kept the CIP and Vision monies separate and did not require the use of the CIP to cover the Vision account. The ordinance approved last fall was recommended by the City’s financial advisor on the Civic Center Project and they still support leaving the funds combined (see attached letter). While the financing for Civic Center project was the primary factor in bringing the ordinance amendment forward last fall, the decision to unify the funds was not based solely on that project. The unification will help the City in issuing bonds secured by either the CIP or Vision accounts and is more consistent with the way other communities handle their sales tax revenue. Based on the benefits and flexibility it provides to the City’s bonding capacity, it was stated in the agenda summary for the ordinance amendment last fall that the amendment should be approved whether or not the Civic Center project moved forward. |
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Funding Source & Fiscal Impact (if applicable): |
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The revenue being committed to CIP and Vision projects would not be altered. Approval may have some negative impact on the City’s ability to bond out of the two funds. |
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Recommendation: |
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Action: The City Attorney and Finance Officer do not support approval of the amended ordinance. Notes: |
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Options: |
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Approve – The Council’s previous action unifying the two funds into one account will be undone. Deny – The monies will stay unified into a single fund with separate accounts. |
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Attachments & Links: |
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