As discussed in the Fiscal Year 2019 budget process, the Town will issue $7,000,000 in Certificates of Obligation for the purpose of the construction of the U.S. Customs and Border Protection Federal Inspection Station to be combined with the Airport Administration offices to be located at 4545 Jimmy Doolittle Drive. The proposed Certificates of Obligation bonds will be self-supporting, meaning that this obligation will be funded through airport operating revenues.

The Town will also be issuing $6,500,000 in Certificates of Obligations for the purpose of water and wastewater capital projects to improve or maintain the Town's existing infrastructure. On January 23, 2018, Council adopted a utility rate model that included the cost of water and wastewater capital projects such as, tank rehabilitation, lift station rehabilitation, facilities replacements, and water and sewer line replacements. As part of the of the utility rate model, Council subsequently approved an ordinance on September 11, 2018 to adopt increases to water and sewer rates. These increases were effective on October 1, 2018. These new rates include funds needed to provide a mix of cash and bond funding for capital improvement projects.

The proposed Certificates of Obligation bonds for water and wastewater improvements will be self-supporting; therefore, this obligation will be funded through the newly adopted utility rates.

The financial impacts of the Certificates of Obligation were included in the Fiscal Year 2019 budget and are reflected in the Fiscal Year 2019 utility rates. The attached ordinance includes blanks that will be filled in on the day of the bond sale, December 11, 2018.