• December 25, 2014

Cove eyes issuing bond for equipment

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Posted: Friday, August 2, 2013 4:30 am | Updated: 11:56 am, Wed Jul 16, 2014.

The city is considering issuing debt on at least $2.2 million for equipment during the 2013-14 fiscal year. But that figure may change.

City Manager Andrea Gardner said in an email Wednesday the estimated figure is not complete as staff will continue to have discussions on issuing a bond for various equipment.

In a presentation on the city budget last week, almost every city department discussed purchasing equipment through a certificate of obligation bond. Some of the equipment included police squad cars, city garbage trucks, mowers and computer software.

“At this time, sufficient operating funds do not exist for certain types of equipment purchases,” Gardner said.

The city’s goal is to eventually stop issuing loans for equipment and roll the cost into the city’s operations budget. However, various city funds can not afford equipment costs in 2013-2014, Gardner said, and moving the purchases to the operating budget may take another three to five years.

“Currently, the only operating fund able to provide the necessary funds for equipment purchases is the drainage fund,” she said. “The goal is to reach the funding levels in all of the other operating funds.”

Since the package is not complete, there are no estimates on how much it could cost, Gardner said. The length of the loan will be determined by the life expectancy of purchased equipment.

In January, the city issued a seven-year $2.6 million bond for the purchase of equipment for multiple departments, which included new police vehicles, library renovations and street construction equipment.

The city plans to try to issue the bond package to a lender in January or February, Gardner said.

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