The City Council is set to discuss a draft plan addressing the city’s debt and capital funding alternatives in a presentation scheduled for April 25, 2023, at 5:30pm at City Hall
The draft, prepared by PFM Financial Advisors LLC, outlines the city’s outstanding debts and financing options for future capital needs, such as a new public safety facility.
Titusville currently has four outstanding long-term debts, amounting to $13,158,000. To finance future capital needs, local governments often issue debt, such as revenue bonds and general obligation bonds. The City of Titusville has historically utilized both options.
Revenue bonds are backed by specific revenue sources and can be issued with a majority vote from the City Council. However, due to current demands on the city’s general fund revenues, this option is not considered viable at this time.
General obligation bonds, on the other hand, require voter approval via a bond referendum and are often pursued for projects that improve the residents’ quality of life.
The city currently levies a 0.25 mills debt service through 2025 for a previously approved general obligation bond. If approved, a similar millage levy over 20 or 30 years would generate approximately $9 million or $12 million, respectively, for capital projects. However, the funding needed is expected to exceed what can be generated by the current millage levy.
To pursue a general obligation bond issuance, a referendum would need to take place during an upcoming election. The process would involve finalizing the project list, holding a City Council workshop, engaging consultants, preparing resolutions, and publishing public notices. If the referendum passes, the City would then begin the process of issuing bonds based on when the projects would commence.
As the City Council weighs its options for financing future capital needs, Titusville residents will be watching closely to see how these decisions may impact their community and local taxes.
View the full Meeting Agenda Packet below
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