Title
Resolution Making Certain Findings And Determinations, Authorizing The Filing Of An Application With The Local Government Commission, Requesting The Local Government Commission To Sell Bonds At A Private Sale And Approving The Financing Team In Connection With The Issuance of Revenue Bonds By The City
Body
Department: Finance and Legal
Council District: All
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Tom Carruthers, City Attorney, 373-2320
PURPOSE:
To authorize the issuance and sale of up to $32.0 million Combined Enterprise (water and sewer) Revenue Bonds in January 2016 to refinance a $30.0 million outstanding revenue bond anticipation note issued in 2014. The bonds will be issued subject to City Council authorizing application to the Local Government Commission to issue the bonds and their approval thereof.
BACKGROUND:
In February 2014, the City authorized a $30.0 million Revenue Bond Anticipation Note (BAN) under an interest-only construction draw program, with the short-term note to be redeemed by March 2017. The City proposes to sell up to $32.0 million in Revenue Bonds in January 2016, to refinance $30 million borrowed under the note program, for the purposes below. The revenue bonds are expected to have an average fixed interest cost of less than 4.00% over their 30-year term. The revenue bonds will be issued pursuant to a supplemental trust agreement with U.S. Bank (bond trustee) and a bond purchase agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated (Bank of America) and Loop Capital Markets LLC.
The proposed bond issue consists of refinancing a $30.0 million bond anticipation note issued in 2014 for various water and sewer system improvements, including replacement of incinerator no. 1 and the initial phase of upgrades to the TZO Wastewater Treatment Plant to meet regulations regarding biologic nutrient removal.
The ...
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