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 $110 million Combined Enterprise System (water and sewer) Revenue Bonds in July 2017 for the following three purposes, (1) to refinance an approximately $40 million short-term revenue bond anticipation note issued in 2016, that funded water and sewer projects, with long-term bonds; (2) to issue approximately $30 million in bonds to fund additional water and sewer projects approved by City Council and that are currently under contract; and (3) to refinance $29.6 million water and sewer revenue bonds issued in 2009 to a lower interest rate. 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 2016, the City authorized a not to exceed $50 million Revenue Bond Anticipation Note (BAN) under an interest-only construction draw program, with the short-term note to be redeemed by March 2018. The City now proposes to sell approximately $70 million revenue bonds in July 2017 to refinance the approximately $40 million it has drawn against the authorized note for water and sewer project costs and to fund an additional $30 million in water and sewer projects that have also been approved by City Council. These revenue bonds are expected to have an average fixed interest cost of approximately 3.5% or less over their 30-year term. (The projects include approximately $10 ...
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