Title
Resolution Directing Filing of Application for Approval by Local Government Commission of $50,000,000 Combined Enterprise System Revenue Bond Anticipation Notes, Series 2016 (Water and Wastewater System Capital Improvements) and Approval of the Financing Team
Body
Department: Financial and Administrative Services
Council District: N/A
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Richard Lusk, Finance Director 373-2077
Contact 2 and Phone: Thomas Carruthers, City Attorney 373-2320
PURPOSE:
The City proposes to issue $50,000,000 Revenue Bonds to finance certain water and wastewater systems improvements that will be constructed over the next two years. Issuance of the bonds requires City Council adoption of the attached resolution directing the filing of an application with the NC Local Government Commission for the approval of the bond issue.
BACKGROUND:
This proposed financing provides $50,000,000 for Osborne wastewater treatment plant improvements, including upgrading the capacity to 56MGD, biological nutrient removal, and debt issuance costs.
BUDGET IMPACT:
Repayment of the debt service on outstanding revenue bonds and proposed Series 2016 revenue BANs will require an increase in water and sewer rates in FY 16-17. Under current economic conditions, the bonds can be marketed at reasonable rates of interest.
RECOMMENDATION / ACTION REQUESTED:
The Finance, Legal and Water Resources Departments recommend City Council adoption of the attached resolution directing the filing of an application for approval by the Local Government Commission of $50,000,000 Combined Enterprise System Revenue Bonds, Series 2016 and approval of the financing team.
COMMITTEE ACTION: This item was referred to Council by the Infrastructure Committee.