Notes for the Work Session - 10-11-24

______________________________________________________________________________ CITY OF TIFFIN CITY ADMINISTRATOR REPORT TO THE CITY COUNCIL – NOTES FOR WORK SESSION ITEMS October 11, 2024 • Attached is an updated draft of the City’s General Obligation Debt Book prepared by Heidi Kuhl with Northland Securities. This document shows current and proposed debt capacities and payments based on current and proposed capital projects. As we have reviewed before, this document gives the City another tool to forecast and plan for future projects. We will review the whole document on Tuesday night but Page 3, ‘Debt Capacity Analysis’ is the page that shows current outstanding debt, projected debt and the City’s legal debt limit. With the City now moving forward with the Recreation Center, this helps put into perspective the financial feasibility of that project along with being able to prepare for the next major capital project which at this point would be the Fire Station. The pages that follow show the breakdowns of payment and revenue sources. The revenue sources assume an annual 8% growth to the taxable value, a $400,000 LOST annual revenue, a steady use of RUT (without the anticipated increase from the special census) and no major adjustments to the TIF revenues and its use for debt repayment. We will go over this in more detail on Tuesday night. Please keep in mind this is just a draft and is certainly subject to change with the priorities of the council. However, as you can see back on page 3 under the ‘Legal Debt Limit’ column, current council priorities could all work within the financial capacity of the City. Heidi will join the meeting Tuesday night through Teams.