Agenda Date: 05/19/2026
Subject:
Title
Ordinance 13-2026: An ordinance on second reading authorizing the issuance of Certificates of Participation (COPs) to finance the construction of certain public improvements of the city
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Laurie Matta, Finance Director
Presentations:
N/A
PURPOSE:
Council consideration of an ordinance approving issuance of Certificates of Participation (COPs) to fund the Main Street Improvement Projects component of Project Downtown.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
This ordinance provides authorization for the City to move forward with the process to issue COPs, in an amount not-to-exceed $30,000,000 (approx. $32,000,000 with anticipated premium) to provide funding for our Main Street Improvement project. While this amount is greater than the $27,500,000 originally envisioned for COPs funding this project, authorizing a higher amount will provide maximum flexibility for the City Council to accommodate its ultimately desired design for the project and construction market inflation that has occurred since the concept planning phase of the project. Any unused proceeds from this COP issuance can be expended for other City projects, such as the service center, which would effectively reduce the amount of COPs that would need to be issued (currently planned for 2027) for that project.
COPs are a financial obligation backed by the City's facility assets, commonly used by municipalities to finance capital improvements. Staff has engaged US Bank as its Trustee. Since this is the first time the City has gone to market for financing in 20 years, staff recommends using the negotiated sale approach to selling the COPs. Based on the typical process required to prepare for sales of the COPs and the design process for the project, staff anticipates the sale to take place this summer.
Important, the documents presented are drafted to authorize the maximum...
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