Cash Flow/Service Maintenance Reserve – City policy sets a goal for 8% of its total budget to be set aside for any cash-flow or service maintenance needs that may arise. This reserve currently has a balance of $16.8 million with planned contribution of $1.6 million over the next two years. The City Council is considering using $7.5 million of this reserve to fund a portion of the Library Campus project leaving a balance of 5%, or $12.4 million after anticipated FY 19 and 20 contributions. The fund would be repaid and return to 8% of the total budget within four to seven years.
Diversion of Lease-Finance Payments – Under the previous Library Campus finance plan the city anticipated borrowing $30 million under a lease-finance agreement, requiring the city to budget $2.4 million per year over 20 years to cover the anticipated annual lease-finance payments. Under the self-finance plan, the first $7 million of these funds would be diverted to the capital fund to help pay for the Library Campus project. Following that, these funds would be used to return the cash flow/service maintenance reserve to 8%.
2019 End of Year Funds – As Fiscal Year 2019 comes to a close, it is estimated that the City will have sufficient one-time money from unspent FY 2019 funds to designate approximately $6 million toward the Library Campus project.
Fire Station 5 – For some time, the city has been considering whether to rebuild or remodel Fire Station 5 in downtown Boise. The city’s capital budget allows for a replacement. However, by renovating the current station instead of constructing a new one, the city may be able to save considerable budget capacity that can be diverted to other needs.
Capital Fund Balance – The city has been undergoing a major efficiency effort to help reduce operations costs and ensure taxpayer dollars are being managed effectively. One example is a recommendation to extend vehicle replacement cycles when maintenance costs for the vehicles remain manageable. This vehicle replacement effort has resulted in a cumulative savings of approximately $1.5 million dollars. This savings, combined with other unallocated resources in the fund, could provide $3 million toward the Library Campus project.
Delay of Hillcrest Library Property Purchase - The capital plan currently includes funds in FY 2023 for land acquisition adjacent to the current Hillcrest Library to be used for a future stand-alone library. By delaying this purchase by several years, these funds could be diverted to complete the necessary funding for the Library Campus project.