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BALLOT QUESTION NUM.

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City of Boulder City

Shall the City of Boulder City expend funds from the Capital Improvement Fund, as they become
available, not to exceed Five Million Dollars ($5,000,000) towards the design and construction of a
new aquatics facility in order to reduce the bond obligation?

Yes .......... o
No .......... o

EXPLANATION

Section 143 of the Boulder City Charter requires that “all expenditures from the Capital Improvement
Fund must be approved by a simple majority of the votes cast by the registered voters of the City on
a proposition placed before them in a special election or general Municipal election or general State
election.”

A “YES” vote would allow the City to use funds from the Capital Improvement Fund, as they become
available, in the amount of Five Million Dollars ($5,000,000) towards the design and construction of a
new aquatics facility in order to reduce the bond obligation.

A “NO” vote would not allow the City to expend funds from the Capital Improvement Fund towards the
design and construction of a new aquatics facility in order to reduce the bond obligation.

ARGUMENT FOR PASSAGE

The Capital Improvement Fund (CIF) is used to fund capital projects such as restoration, maintenance,
and construction of city facilities, fire and police vehicles, etc. Using Capital Improvement Funds to
help fund a new aquatic facility to replace the current pool, which is failing, would be an appropriate
use of the Capital Improvement Fund. The City’s CIF is funded through the proceeds of leases (20% of
lease revenues) and land sales (98% of proceeds). Currently, the CIF balance, with all planned expen-
ditures accounted for, is $9.9 million. If approved, the use of up to $5 million from the CIF will help to
bring down the bond obligation of a new aquatic facility, bringing the requested $40 million bond down
to a $35 million bond. This will have a positive effect on the amount of interest paid and the amount
of property taxes used to secure the bond for the project. The $5 million will be put toward design and
construction, and will be deducted in 2020, leaving a remaining fund balance of over $6 million. Even
with all planned CIF expenditures and the funding of a new aquatic facility, the CIF is projected to
return to $9.8 million within one year. By 2024, the CIF balance is projected at $17.1 million assum-
ing the construction of a new aquatic facility and all other planned expenditures. A new aquatic center
would enhance the beauty and use of Broadbent Park, while providing health and fitness benefits across
all generations of our community.

(Submitted by the Ballot Question Committee as provided for in NRS 295.217)


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REBUTTAL TO ARGUMENT FOR PASSAGE

A new pool is a capital project, and the Capital Improvement Fund is an appropriate use for funding
a capital project. However, if voters do not approve the issuance of general obligation bonds for
constructing the aquatic facility, it is not appropriate to spend $5 million on design costs for a pool that
may not ever be built. The City has an estimate of all potential costs of the new aquatic facility. Using
Capital Improvement Fund money for design costs in order to determine the exact costs is not fiscally
responsible. If the bond question fails, $5 million has been wasted, and the community is left without an
aquatic center and with $5 million less in the Capital Improvement Fund. This question should only be
passed when and if the citizens support the issuance of general obligation bonds to construct the facility.

(Submitted by the City Clerk as provided for in NRS 295.217)

ARGUMENT AGAINST PASSAGE

Vote “NO” on Question No. 1. This question is a companion question to Question No. 3 which requests
voter approval for the issuance of general obligation bonds for a new aquatic center. If the pool question
fails and this question passes, the City has the authority to use up to $5 million towards the design of
a pool which may never be built. Furthermore, using the Capital Improvement Fund for design costs
only is not an appropriate use and is not a capital expense. Rather than use money from the Capital
Improvement Fund for any design costs, it should first be determined if voters approve the bond issue
for the aquatic center. Spending $5 million on a project prior to getting voter approval for that same
project is not fiscally responsible.
(Submitted by the City Clerk as provided for in NRS 295.217)

REBUTTAL TO ARGUMENT AGAINST PASSAGE

A “Yes” vote would allow the City to apply $5 million from the Capital Improvement Fund, decreas-
ing the interest bearing principle of the project. Should the $40 million bond fail, and Question No. 1
pass, the $5 million could be used by the City for design costs of a new facility which could save the
City money in future inflation costs and expedite construction when approved. This would be a deci-
sion made by our City Council members. The $5 million could also remain designated in the Capital
Improvement Fund for future application toward design and construction of a new aquatic facility.
Should the $40 million bond issue fail, the condition of our current facility ensures a future bond pro-
posal in 2020, as our current facility is failing. It is becoming increasingly difficult, both physically and
financially, to maintain and is at risk of being permanently closed. Closing our current facility would be
a tremendous loss to our community as generations of citizens depend upon it for both recreation and
fitness. A closed facility at Broadbent Park, in the heart of our school zone, would not only be an eye
sore, but a liability.

(Submitted by the Ballot Question Committee as provided for in NRS 295.217)

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FISCAL NOTE

This will impact the Capital Improvement Fund in the amount of not more than $5,000,000 and then
only if funds are available within the Capital Improvement Fund. This question does not require an
expense that will require the levy or imposition of a new tax or fee or the increase of an existing tax or
fee.

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