2026-10-05 - Board of Finance

Summary

Written by Claude from the auto-generated captions of a short recording that begins mid-sentence; names and figures may be misheard.

  • The Board of Finance met Monday, October 5, 2026, beginning at 5:32 p.m. and adjourned at 5:45 p.m. The agenda and consent agenda were approved; no one spoke in public forum.
  • Annual Capital Improvement Bond Authorization was the only deliberative item. The finance department asked for authority to borrow the usual $7 million annual amount: $2 million for general fund capital needs and $2 million for the school district, with the remainder for the airport, which borrows under the city's stronger credit rating. A last round of the $20 million general obligation note authorized two years ago is also planned.
  • Uses cited for the annual borrowing included a fuel depot at 645 Pine, police station HVAC, the local match for the Winooski bridge, software and project management, design planning for a community health and safety building, ramp work at fire stations, and $100,000 for North Champlain Street transportation planning.
  • The resolutions, prepared by bond counsel, let the administration accept interest rates up to 7%; staff said they do not expect rates that high but want to move now to limit exposure to market volatility.
  • In response to a councilor's question, staff said debt service on bonds sold this year is not due until fiscal 2028, so it is not in the fiscal 2027 tax rate. Staff promised to send the council tax-impact and spending details.
  • On a motion by Councilor Barlo, seconded by Councilor Bergman as captioned, the board voted unanimously to approve and recommend that the City Council waive the reading.

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Transcript

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Transcript

00:00meeting on Monday, October 5th, 2026 at

00:035:32 p.m. And our first item is the

00:05agenda. Is there a motion on the agenda?

00:09>> Moved by councelor Carpenter,

00:12>> second by councelor Barlo.

00:14>> Yes.

00:14>> Any discussion before we vote?

00:18Seeing none, all in favor indicate by

00:19saying I.

00:20>> I.

00:21>> Any oppose? Nay. Motion carries. Thank

00:24you. Our second item is the public forum

00:26for board of finance. It is our practice

00:28to go first in the room. members of the

00:30public and then online. Not seeing any

00:32members of the public staff. So, we will

00:35go online and

00:38>> are we for real?

00:40>> Okay. Maybe our time change has

00:45attendee

00:50public.

00:57>> Usually she will make comments upstairs.

01:01She wants us to know that we miss her.

01:02She's just watching afar. Um okay. Well,

01:06then if they're here to address the

01:07board of finance, I will close public

01:09forum and we'll move on to the consent

01:11agenda. Is there a motion on the consent

01:12agenda?

01:25Consent agenda is not it's as

01:28consent agenda take the action.

01:31>> Thank you councelor seconded by

01:33councelor. Thank you. Any discussion on

01:35the consent agenda before

01:38seeing none all in favor indicate by

01:40saying I oppose nay. Motion carries

01:44unanimously. On to our one and only item

01:47on the deliberative agenda which is item

01:494.1 of our department of finance

01:51administration which is the

01:52authorization for capital improvement

01:54bond to student public

02:02our

02:05time to sell the kind of known bonds or

02:09bonds that we've had in the queue.

02:13Um, by that I mean we do annual

02:16borrowing in the amount of $7 million

02:20every year

02:24that is authorized uh for us to take up.

02:26This year we are proposing that we do go

02:30forth to borrow 7 million 2 million of

02:33that um is to go towards our general

02:38fund or city capital improvement needs.

02:43um

02:443 million goes to be. We allow them to

02:49borrow under our debt cut under our

02:54banner, if you will, because uh we have

02:56a higher credit rate as the whole city

03:01and $2 million

03:03um is also available for school

03:07district. And much of this, if not all

03:11of these dollars, go towards the

03:15maintenance of the

03:19various facilities and assets that need

03:22to be maintained.

03:24Um, I do have a list uh which I'll get

03:28to and I'll try to

03:31forward to the group I suppose because

03:34it might be easier to look at. Um,

03:38in addition to our annual borrowing, we

03:41are doing the,

03:44I believe, last round of the

03:48$20 million general obligation note that

03:51was passed

03:53two years ago. So, the second round,

03:56there'll be one more in the upcoming

03:59fiscal year. Um that is

04:03all planned usage to go towards

04:09public art.

04:12some towards 645 Pine, specifically a

04:15fuel depot and uh the police station

04:19HVAC

04:22streaming u makes up another large

04:26portion of it nearly $4 million of that

04:296.5 million. The Wooki Bridge local

04:33match is 1.2 2 million

04:36and

04:40that makes up the entirety of the 6.5

04:43million bond in the annual amount. uh

04:48which really um is uh directed towards

04:53maintenance or current construction

04:55process would be for uh a couple of

05:00software items,

05:03project management costs and the

05:08planning around a potential design phase

05:12one and two of the community health and

05:15safety billing uh building as as well as

05:18uh ramp work at fire stations 1, four,

05:23and five.

05:25And the remaining $100,000

05:28would be going towards transportation

05:31planning of the

05:33North Champlain PDL phase 2.

05:37Um

05:40for

05:41just some general context, we ask the

05:44board of finance and the city council

05:46for the authority to pledge the credit

05:49of the city in these amounts. The

05:52resolutions attached um are prepared by

05:55our bond council which is uh Thomas

05:58Maloney at PFC and the actual selling of

06:04the bonds is uh under the operation of

06:09our investment advisor PFM.

06:12[clears throat]

06:12Um and we put in our memo and in the

06:17resolution itself that we have the

06:22essentially the board of finance, city

06:24council is allowing the authority of uh

06:28us the city administration to accept

06:32bond prices up to 7%.

06:35Um, we do not expect that high of an

06:40interest rate to come across our door,

06:44but as a result of current market

06:46conditions, which is also the reason why

06:49I believe um we are hoping to go current

06:53tonight is the sort of out there, the

06:56less exposure we have to um the general

06:59overall market

07:02volatility that

07:04entire country is experiencing right

07:06now. Um,

07:09councelor Bergman, I was just trying to

07:12um get to the specific tax implications

07:16we do. I will make a note of that uh for

07:20our future

07:22kind of recurring ask which this is. So,

07:24we'll include that information in the

07:27memo for next year. But I will have to

07:29quickly follow up with you just two

07:31minutes from now about what that actual

07:34taxation would be in this meeting

07:37>> or not possibly. I mean this is the only

07:39item. So the item might adjourn uh

07:43before I'm able to give you I apologize.

07:46I I uh saw the

07:51what the uses are but I just the other

07:53question.

07:55Not a problem. I I think that that

07:57information should go to

07:59>> Sure. Ask the board council.

08:02I appreciate

08:03>> Yeah.

08:05Ask.

08:07>> Oh, good.

08:08>> Is the tax implication already embedded

08:10in the task tax that we asked for?

08:14>> I mean, it is

08:17to the ex um because these items are

08:20recurring and they're the same numbers

08:22that we asked for last year.

08:25They are

08:29you could get to the numbers but no the

08:31the dollars themselves aren't included

08:33in the debt service that we asked for

08:35for the fiscal year 27 budget.

08:38>> What would happen is we would sell the

08:39bonds this year.

08:40>> Yeah.

08:41>> And our debt service wouldn't be due

08:42until fiscal 28.

08:44>> So the similar action that we took

08:47>> the previous year.

08:49>> Okay. those amounts are included in the

08:51debt service calculation uh for the tax

08:54rate in fiscal year 27. So it's always a

08:57year behind.

08:58>> Okay.

09:00>> Do we use the bond bank or privately

09:02place these or

09:03>> we uh it depends a little but um I

09:08believe these won't

09:11I couldn't speak to what these will be.

09:13I don't know what the market will

09:14dictate but it can be

09:18>> anything else counselor

09:21>> actually I'm just curious under

09:27>> that I would have to get back to you on

09:30um the uh folks at that at PF to take

09:36care of those things and I can't recall

09:37if they do their own underwriting they

09:41have

09:44I just

09:48>> any other questions or comments on this

09:50item?

09:52>> I want to thank you just for being

09:55responsive to that. I got confused when

09:57I read it. I

09:59proceeded to ask questions.

10:02Good questions.

10:04>> The first meeting

10:07that's what we're here for. Okay. Any

10:10further comments before there might be a

10:11motion?

10:15I would move to approve and recommend

10:17that the council wave the reading

10:21related to the FY27.

10:24>> Thank you, Councelor Barlo. Is there a

10:25second?

10:27>> Second.

10:27>> Second by councelor Burkeman. Thank you.

10:29Any final discussion before we vote?

10:31just to have not only the tax

10:33implications but then what the spending

10:36is going to go for you know

10:41would be part

10:42>> yeah and it'll be good for you to have

10:44that information I just read out what it

10:47is but

10:48>> exact I think very important people

10:53why this is important

10:57>> if I might ask to send that to the

10:59council

11:00upstairs. So hopefully taking action

11:02upstairs as well.

11:04>> All right. See no further comments. I

11:09will call questions. So all in favor

11:10indicate by saying I.

11:11>> I.

11:12>> If those nay. Motion carries

11:14unanimously. Thank you.

11:16And with no other items on the board of

11:19agenda, I will adjourn the meeting at

11:2154.

11:28>> 5:45. not get used to that.

11:34>> I run it pretty

11:46[music]

11:57>> [music]

12:03[music]

12:14[music]

12:15>> Heat. Hey. Hey. Hey.