City manager Jim Crosby presented proposed capital projects for coming years during Tuesday’s work session before the regularly-scheduled City Council meeting.
The proposed projects would go through 2020 with funding costs totaling $13,123,500.
“These are projects that the Council have talked about and really obligated ourselves to a number of these projects,” Crosby said at the beginning of the session. “The question is how to pay for them.”
Crosby said they’ve been talking to multiple experts and officials to figure out the costs for proposed projects and how to split them up between multiple years to be able to finance them.
With the proposed plans, the total for 2017 would be $4,080,000 and would include:
—Replacing the three bridges on Highway 4 with one single bridge, and the cost for Right of Way and Public and Private Utility Relocation.
—Design costs for Frisco and I-40 Interchange,
—Building a new animal control building, and
—Replacing the sign shop and street building after tearing them down for the new animal control building.
The total for 2018 would total $2,460,000 and would include:
—Construction of Vandament, and
—Finishing the design and Right of Way for Frisco and I-40 Interchange.
The final design and utility relocation for Frisco and I-40 Interchange would be in 2019, totaling $865,000. And finally in 2020, construction would begin on Frisco and I-40 Interchange, which would include the half mile to Highway 66 and cost $5,718,500.
“These are pretty much the basic projects we’ve talked about. We’ve just broken them down into the years we need them and how we’re going to move forward with these projects,” Crosby told Council members during Tuesday’s work session.
Chris Gander, investment banker for BOK Financial Securities, visited the work session to discuss the best options for how to finance the projects.
“So basically what you’d be doing in the early years would just be paying interest and then as the principles start becoming due as things fall off,” Gander said during the work session in regards to using debt issuances for the proposed projects.
Gander said that as far as cities go, the City of Yukon doesn’t have much outstanding debt and is in a good financial place, based on that information.
Gander also gave estimates on how much debt the City of Yukon would have any given year with the bonds.
“You’re able to do this and really only have a negative effect to your cash flow and you funding other projects in the city with cash by $438,000 in your worst year,” Gander said. “At that point, your old debt starts falling off and you really start paying down your others.”
All of the debt issuances Gander discussed would be ten year issuances from the date when they’re anticipated to be issued to maintain the city’s borrowing history, he pointed out during the session.
Mayor John Alberts questioned if the delayed ten year issuances would affect the city’s credit or anything, but Gander said it wouldn’t and that it’s common to do it this way.
These are only proposed projects, years and costs so none of which are set in stone. Although Crosby presented the proposed plans to City Council and Crosby’s ideas of the best way to fund them were discussed, there was nothing finalized or ready to bring to the Council to approve. Due to time restrictions during the work session, the discussion wasn’t completed.