Title
Order Authorizing The Issuance By The City Of Greensboro, North Carolina Of Not To Exceed $85,000,000 Combined Enterprise System Revenue Bonds And Other Actions In Connection Therewith
Body
Department: Financial & Administrative Services
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Richard L. Lusk, Finance Director 373-2077
Contact 2 and Phone: Thomas D. Carruthers, City Attorney 373-2320
PURPOSE: The City proposes to issue $85 million Revenue Bonds to finance certain water and wastewater systems improvements that will be constructed over the next two years. Issuance of short-term Bond Anticipation Notes (BANs) will provide construction financing prior to 30-year revenue bonds being issued in 2020. Issuance of the BANs requires City Council adoption of the attached bond order.
BACKGROUND: This proposed financing provides $85 million for improvements to the T. Z. Osborne wastewater treatment plant related to biological nutrient removal, Mitchell Water Filter Plant improvements, Hilltop Road Lift Station improvements, and debt issuance costs.
BUDGET IMPACT: Repayment of the debt service on outstanding revenue bonds and proposed Series 2018 revenue BANs will require an increase in water and sewer rates in FY 18-19. 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 bond order authorizing the issuance of $85 million Combined Enterprise System Revenue BANs, Series 2018.