In discussions with Council prior to the 2J bond issuance, it was agreed that $7.4 million of the $12.6 million 2E Fund balance would be used to pay down the 2017 bonds. At that time, the remaining debit service on the 2017 bonds was approximately $12.4 million. The additional $5.0 million needed to completely pay off the 2017 bonds was included in the $38.7 million 2J bond issuance proceeds. City Staff believed the $5.0 million payoff would be made through escrow, rather than an expense to the City. Rather, the $5.0 million was included in the total amount of 2J bond issuance proceeds that the City received and the payoff is considered a 2E expense. Therefore, in order to be fully transparent with the community and to comply with the City’s budgetary procedures, a supplemental appropriation and transfer of funds is necessary.