City Council - Charter Change Committee

Monday, November 25, 2024, 5:30 PM, Contois Auditorium, City Hall OR REMOTELY via ZOOM When: Nov 21, 2024 05:30 PM Eastern Time (US and Canada) Topic: Charter Change Committee Meeting Please click the link below to join the webinar: https://zoom.us/j/96540365417?pwd=s8kMcXZjUI7ZuktIc8kDbWfq7sxLIx.1 Passcode: 803629 Or One tap mobile : +13052241968,,96540365417#,,,,*803629# US +13092053325,,96540365417#,,,,*803629# US Or Telephone: Dial(for higher quality, dial a number based on your current location): +1 305 224 1968 US +1 309 205 3325 US +1 312 626 6799 US (Chicago) +1 646 931 3860 US +1 929 205 6099 US (New York) +1 301 715 8592 US (Washington DC) +1 719 359 4580 US +1 253 205 0468 US +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 360 209 5623 US +1 386 347 5053 US +1 507 473 4847 US +1 564 217 2000 US +1 669 444 9171 US +1 669 900 6833 US (San Jose) +1 689 278 1000 US Webinar ID: 965 4036 5417 Passcode: 803629 International numbers available: https://zoom.us/u/adhkD7egDL 1. Agenda 1.1. Motion to amend/adopt agenda 2. Adopt Draft Minutes Subject 2.1. Adopt Draft Minutes from 11/21 Meeting November 25, 2024 - CANCELLED: Charter Change Committee Meeting - Monday, November 25, 2024, 5:30 PM, Contois Auditorium, City Hall OR REMOTELY via ZOOM Category 2. Adopt Draft Minutes Department Council and Board Page 1 of 7  Type Recommended Action 3. Public Forum Subject 3.1. Verbal Comments Meeting November 25, 2024 - CANCELLED: Charter Change Committee Meeting - Monday, November 25, 2024, 5:30 PM, Contois Auditorium, City Hall OR REMOTELY via ZOOM Category 3. Public Forum Department Council and Board Type 4. City Council Authority to Pledge Credit of the City Subject 4.1. City Council Authority to Pledge Credit of the City Meeting November 25, 2024 - CANCELLED: Charter Change Committee Meeting - Monday, November 25, 2024, 5:30 PM, Contois Auditorium, City Hall OR REMOTELY via ZOOM Category 4. City Council Authority to Pledge Credit of the City Department Council and Board Type Recommended Action 5. Any Other Committee Business Subject 5.1. Any Other Committee Business Meeting November 25, 2024 - CANCELLED: Charter Change Committee Meeting - Monday, November 25, 2024, 5:30 PM, Contois Auditorium, City Hall OR REMOTELY via ZOOM Category 5. Any Other Committee Business Department Council and Board Type Recommended Action 6. Adjournment Subject 6.1. Motion to adjourn Meeting November 25, 2024 - CANCELLED: Charter Change Committee Meeting - Monday, November 25, 2024, 5:30 PM, Contois Auditorium, City Hall OR REMOTELY via ZOOM Category 6. Adjournment Department Council and Board Type Recommended Action Page 2 of 7 Page 3 of 7  Resolution Relating to RESOLUTION________ Sponsor(s): ____________________ Introduced: ____________________ MARCH 4, 2025 ANNUAL CITY MEETING – CHARTER Referred to: ____________________ CHANGE RE: CITY COUNCIL AUTHORITY TO PLEDGE ______________________________ CREDIT OF THE CITY Action: ________________________ Date: __________________________ Signed by Mayor: ________________ CITY OF BURLINGTON In the year Two Thousand Twenty-Four……………………………………………………………………… Resolved by the City Council of the City of Burlington, as follows: 1 That WHEREAS, § 62 of the City Charter generally requires voter approval to sell general obligation 2 bonds, but allows the City Council to authorize the Chief Administrative Officer to sell up to $2 million in 3 general obligation bonds per fiscal year for working capital and capital expenses, while also granting the legal 4 voters of the City the power to referend the City Council’s exercise of said authority; and 5 WHEREAS, § 63 of the City Charter grants similar authority to the City Council upon 6 recommendation of the Board of Light Commissioners to authorize the sale of bonds up to $3 million for use 7 by the Burlington Electric Department, said authorization also subject to the voters’ referendum power; and 8 WHEREAS, bonds sold under § 63 are on the general credit of the City but are to be paid from rates 9 rather than from property taxes; and 10 WHEREAS, the City has significant deferred maintenance needs for its infrastructure, including the 11 infrastructure of its electrical, drinking water, storm drainage, and wastewater systems, and delays in 12 addressing deferred maintenance needs typically increase costs once those needs are addressed; and 13 WHEREAS, due to inflation, the dollar limits specified in §§ 62 and 63 are no longer adequate to meet 14 the City’s deferred maintenance needs, which may be necessary to continue to comply with applicable state 15 and federal laws; and 16 WHEREAS, the City Council desires any increase in the $2 million borrowing limitation of § 62 to be 17 phased in responsibly to limit the burden on the City’s property taxpayers; and 18 WHEREAS, at its November 12, 2024 meeting, the City Council referred a motion to the City Council 19 Charter Change Committee proposing a Charter amendment that would amend the dollar thresholds in §§ 62 20 and 63 to address the foregoing needs; and 21 WHEREAS, the Charter Change Committee considered the proposal at its meeting(s) on [date/s], 22 received any public comments, considered any appropriate changes to the proposal, and referred the proposal 23 back to the City Council with a positive recommendation; 24 NOW, THEREFORE, BE IT RESOLVED that the City Council approves the proposed Charter 25 amendments and requests that the Mayor warn the following question and place it on the ballot for the Annual Page 4 of 7  Page 2 Resolution Relating to MARCH 4, 2025 ANNUAL CITY MEETING – CHARTER CHANGE RE: CITY COUNCIL AUTHORITY TO PLEDGE CREDIT OF CITY 26 City Meeting to be held on March 4, 2025, and that the City Clerk set public hearings on this question in 27 accordance with § 303 of the City Charter and 17 V.S.A. § 2645, said hearings to be warned for the 15th and 28 21st of January, 2025, or otherwise as soon as necessary or convenient and in accordance with applicable law: 29 30 “Shall the Charter of the City of Burlington, Acts of 1948, No. 298, as amended, be further amended as 31 follows?: 32 33 § 62. Council; School Board; not to pledge credit of City; exceptions: 34 35 Subsections (a) to (e), As written. 36 (f)(1) The Chief Administrative Officer, when authorized and directed by resolution of the City 37 Council, may pledge the credit of the City by issuing negotiable orders, warrants, notes, or bonds in an amount 38 not to exceed in the aggregate $2 million in any fiscal year for the purpose of providing working capital and 39 capital improvements, additions, and replacements required for the efficient and economical operation of the 40 City and its departments, other than the Electric Light Department and the Water and Wastewater Divisions of 41 the Public Works Department. If any of such annual borrowing authority is used to provide working capital, 42 notes shall be issued in anticipation of the receipt of City revenue and shall mature within two years from the 43 date of issue, and may be renewed or refunded by the issue of other notes maturing within a similar period 44 whenever such action is deemed expedient. If any of such annual borrowing authority is used to provide 45 capital improvements, additions, and replacements, the negotiable orders, warrants, notes, or bonds issued for 46 such purposes shall be of such denominations, payable at such time or times, at such rate of interest, and to be 47 sold and registered in such manner and under such terms and conditions as shall be established by resolution 48 of the City Council. Beginning in fiscal year 2028, the foregoing $2 million limitation shall increase to not 49 more than $5 million, and beginning in 2031, it shall increase to not more than $10 million. 50 (2) Notwithstanding the above, however, five per cent of the qualified voters of the City may petition 51 for referendum review of the action by the City Council. Any such request for referendum review shall be in 52 accordance with and governed by the procedures specified in section 63 of this charter for borrowing on 53 behalf of Burlington Electric Department or Public Works Department. 54 Subsection (f)(3), As written. 55 § 63. Council may pledge credit of City when authorized by voters to do so: 56 (a) Whenever the legal voters of said City, by two-thirds vote of all voters present and voting on the question 57 at any special or annual City meeting duly warned for the purpose, or, if the purpose shall be the making of an 58 improvement relating to a public school by a majority vote of all voters present and voting on the question, 59 shall give authority to the City Council thereof to pledge the credit of said City for any purpose by issuing its 60 negotiable orders, warrants, notes, or bonds, or whenever the City Council shall determine by resolution, upon 61 prior recommendation of the Board of Light Commissioners, that it is necessary during a fiscal year to pledge 62 the credit of the City by issuing its negotiable orders, warrants, notes, or bonds in an amount not to exceed in 63 the aggregate $3 million in any such fiscal year for the purpose of providing capital improvements, additions, Page 5 of 7  Page 3 Resolution Relating to MARCH 4, 2025 ANNUAL CITY MEETING – CHARTER CHANGE RE: CITY COUNCIL AUTHORITY TO PLEDGE CREDIT OF CITY 64 and replacements required for the efficient and economical operation of the Electric Light Department, said 65 City shall have power and authority to issue its negotiable orders, warrants, notes, or bonds, and to prescribe 66 whether such bonds shall be registered or have interest coupons attached, to the amount, not to exceed the 67 limit prescribed by the general laws of the State, for which authority has been given as aforesaid to so pledge 68 the credit of said City; such notes or bonds to be of such denominations, payable at such time or times; and at 69 such a rate of interest, and to be sold and registered in such manner and under such terms and conditions as 70 shall be established by resolution of said City Council. 71 (b) Whenever the City Council shall determine by resolution, 72 73 (1) Upon prior recommendation of the Board of Light Commissioners that it is necessary during a 74 fiscal year to pledge the credit of the City by issuing its negotiable orders, warrants, notes, or bonds in 75 an amount up to in the aggregate $6 million in any such fiscal year for the purpose of providing capital 76 improvements, additions, and replacements required for the efficient and economical operation of the 77 Electric Light Department, or 78 (2) Upon prior recommendation of the Public Works Commission that it is necessary during a fiscal 79 year to pledge the credit of the City by issuing its negotiable orders, warrants, notes, or bonds in an 80 amount up to in the aggregate $6 million in any such fiscal year for the purpose of providing capital 81 improvements, additions, and replacements required for the efficient and economical operation of the 82 drinking water, wastewater, stormwater, and solid waste facilities operated by the Public Works 83 Department, 84 Said City shall have power and authority to issue its negotiable orders, warrants, notes, or bonds, and to 85 prescribe whether such bonds shall be registered or have interest coupons attached, to the amount, not to 86 exceed the limit prescribed by the general laws of the State, for which authority has been given as aforesaid to 87 so pledge the credit of said City. Such notes or bonds shall be of such denominations, payable at such time or 88 times, at such a rate of interest, and sold and registered in such manner and under such terms and conditions as 89 shall be established by resolution of said City Council. By majority vote, the voters of the City may increase 90 either or both borrowing limits set forth in this subsection permanently or for any fiscal year or years. 91 (c) Notwithstanding subsection (ab) of this section, however, a City Council resolution authorizing the credit 92 of the City to be pledged in an amount not to exceed $3 million in a fiscal year for the operation of the Electric 93 Light Department as pursuant theretoaforesaid in an amount not to exceed $3 million in a fiscal year for the 94 operation of the Electric Light Department as aforesaid shall not give the City power to so pledge its credit 95 until 44 days have passed following the effective date of such resolution. If during such 44-day period a 96 petition is filed with the Chief Administrative Officer signed by not less than five percent of the qualified 97 voters of the City requesting a referendum vote on whether the credit of the City will be pledged in accordance 98 with the City Council resolution, the credit of the City shall not be pledged pursuant thereto unless a majority 99 of the qualified voters of the City present and voting at a duly warned annual or special City meeting vote to 100 affirm such City Council resolution. Upon receipt of a proper petition, a special City meeting shall be called 101 by the City Council within 60 days from the date such petition is received, or if the next annual City meeting 102 falls within the 60-day period, the City Council shall include an article in the warning for such annual City 103 meeting, to determine whether the voters will affirm such resolution. If at such City meeting a majority of the 104 qualified voters voting on the question affirm the action of the City Council, the City shall have power to Page 6 of 7  Page 4 Resolution Relating to MARCH 4, 2025 ANNUAL CITY MEETING – CHARTER CHANGE RE: CITY COUNCIL AUTHORITY TO PLEDGE CREDIT OF CITY 105 pledge its credit pursuant to the City Council resolution as of the day following such City meeting. If the City 106 Council resolution is not affirmed by a majority of the qualified voters voting on the question, the City shall 107 not have power to pledge its credit in accordance with such resolution. 108 109 *Material underlined added. 110 ** Material stricken deleted. 111 112 113 er/ Resolutions 2024/Charger Change re City Council Borrowing Authority 114 November 12, 2024 Page 7 of 7