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Early Direction for the Fiscal Year 2024-25 Budget <br />March 19, 2024 <br />Page 15 <br />The rate study consultant's latest estimate of planned improvements that remain <br />unfunded is $30.2 million. In addition, the City is currently installing smart meters as part <br />of the Advanced Metering Infrastructure (AMI) project. The latest information suggests <br />we have an $11 million funding shortfall to complete the project. Finally, the City may <br />have an opportunity to refinance the outstanding $8.9 million of water bonds issued in <br />2014. <br />The City has assembled a financing team to structure a proposed revenue bond issue. <br />The debt would be secured by water enterprise revenue, and therefore would only require <br />City Council approval. The financing team would only be paid if bonds are issued, and <br />payment would come from the bond proceeds. <br />Staff expects to return to the City Council prior to June 30 to consider a recommendation <br />to proceed with a proposed debt financing. <br />FISCAL IMPACT <br />There is no direct fiscal impact at this time, as the recommended action would only <br />provide direction to staff. City Council is scheduled to consider the proposed FY 2024-25 <br />budget in May and take action in June. <br />EXHIBIT(S) <br />1. City Council Priorities <br />2. FY23-24 Measure X Spending Plan <br />Submitted By: Kathryn Downs, FMSA Executive Director <br />Approved By: Tom Hatch, Interim City Manager <br />City Council 26 — 15 3/19/2024 <br />