10-24-2016 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Sarah Cotton, Finance Director MEETING DATE: October 24, 2016 TOPIC: Awarding the Sale of Bonds, Series 2016ABC VOTE REQUIRED: Simple Majority BACKGROUND At the August 8, 2016, City Council meeting, the City Council approved the plans and specifications and authorized the advertisement for bids related to the 2016 Aqua Lane to Black Duck Drive Trunk Water Main Project. The project will create a looped water system that will provide residents with high quality water supply and adequate pressure for fire demand. The project includes trunk water main improvements along Aqua Lane, through the Anoka County Regional Park, along Sand Piper Drive and West Shadow Lake Drive, and connecting the existing water main on the north end of Black Duck Drive. On September 26, 2016, the City Council approved Resolution No. 16-116 providing for the issuance and sale of approximately $1,420,000 General Obligation Water Utility Revenue Bonds, Series 2016A to finance the water main improvements noted above. The bond issue will have a 10-year term and will be repaid utilizing revenues from the city’s Area and Unit Trunk fund. On September 26th, the City Council also approved Resolution No. 16-125 and Resolution No. 16-126 providing for the issuance and sale of approximately $1,980,000 Taxable General Obligation Refunding Improvement Bonds, Series 2016B and $1,600,000 General Obligation Tax Abatement Refunding Bonds, Series 2016C, respectively. The 2016B refunding would refinance the outstanding portion of the Series 2005A Taxable G.O. Improvement Bonds issued to fund the Legacy at Woods Edge Improvements, while the 2016C refunding would refinance the outstanding portion of the Series 2006C G.O. Tax Abatement Bonds issued to finance the city’s participation in the YMCA project. It was estimated at the time that by refunding the 2005A Series issue that the city could achieve net present value savings of approximately $130,682 over the term of the issue, a 6.20% savings, and that by refunding the 2006C Series issue that the city could achieve net present value savings of approximately $133,833 over the term of the issue, a 7.73% savings. The total estimated net present value savings of these refundings was estimated to be approximately $265K. The 2016B refunding issue has been structured with a term matching that of the 2005A bonds and would be repaid through previously adopted special assessments, TIF, and other miscellaneous revenues. The 2016C refunding issue has been structured with a term matching that of the 2006C bonds and would be repaid from tax abatement revenues. The City has since issued its Official Statement and advertised for bids for these issues. Bids were received earlier today by the City’s financial advisors, Springsted, Inc. Terri Heaton of Springsted, Inc. will be in attendance at the City Council meeting to present the results of the bidding process.