09/12/2005 Council Packet - Laserfiche WebLink

Home Search

AGENDA ITEM 2C & 2D STAFF ORIGINATOR Al Rolek MEETING DATE September 12, 2005 TOPIC Consideration of Resolution 05 -133 Providing For The Issuance And Sale Of Approximately $5,550,000 Taxable General Obligation Improvement Bonds, Series 2005A and Resolution 05- 134 Providing For The Issuance And Sale Of Approximately $3,945,000 General Obligation Improvement Refunding Bonds, Series 2005A VOTE REQUIRED BACKGROUND Simple Majority The City Council has approved public improvement projects for the Legacy at Woods Edge development. To finance the improvements to be made in the project and future project phases it is necessary to issue and sell Taxable General Obligation Improvement bonds. The bond issue must be sold as a taxable issue, as opposed to a tax - exempt issue, due to provisions in the city charter relating to differences in assessing residential and non - residential properties. Our financial advisor, Springsted, Inc. has issued their recommendation for the issuance of $5,550,000 Taxable G.O. Improvement Bonds Series 2005A. In addition, staff continually monitors the market for opportunities to refinance existing debt issues at lower interest rates, thereby saving the city money on financing costs. By refinancing two existing issues, the G.O. Improvement Bonds Series 1998A and 1998B, it is estimated that the city can save interest costs of approximately $13,800 per year, with net present value savings of approximately $123,000 over the term of the issues. Springsted, Inc. has issued their recommendation for the issuance of $3,945,000 G.O. Improvement Refunding Bonds Series 2005B. If approved, the sale of these two issues would occur on September 26, 2005, with consideration for award by the City Council at its meeting the same day. The Series 2005A issue would have a 15 -year term running from 2007 through 2021 and would be repaid through the levy of special assessments against the benefited parcels. The Series 2005B issue would retire debt according to the existing schedules, with full retirement occurring in 2015. Staff recommendation is for the City Council, in separate actions, to approve Resolution 05 -133 providing for the issuance and sale of $5,550,000 Taxable G.O. Improvement Bonds, Series 2005A and Resolution 05 -134 providing for the issuance and sale of $3,945,000 G.O. Improvement Refunding Bonds, Series 2005B. OPTIONS 1. Adopt Resolutions 05 -133 and 05 -134. 2. Refer to Staff for further review. 3. Deny Resolutions 05 -133 and 05 -134. RECOMMENDATION Option 1 A -3 -30-