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t • • • INSERT AFTER PAGE 23 AGENDA ITEM 2B (i) & (ii) STAFF ORIGINATOR Al Rolek MEETING DATE June 12, 2006 TOPIC Resolution 06 -96 and 06 -97 amending the Schedule for the Issuance and Sale of $2,470,000 G.O. Tax Abatement Bonds and $570,000 G.O. Utility Revenue Bonds VOTE REQUIRED BACKGROUND Simple Majority On May 22 the City Council approved resolutions 06 -85 and 06 -86 calling for the issuance of $2,470,000 G.O. Tax Abatement Bonds to finance its obligation to the YMCA project, and $570,000 G.O. Utility Revenue Bonds to finance utility projects in the city. The City Council has previously authorized the issuance of conduit bonds on behalf of the YMCA to finance that entity's portion of the facility construction costs. The closing on the conduit bonds, originally scheduled for June 9, has been delayed due to a number of factors to a tentative closing date of June 28. Staff has deliberated with bond counsel relative to the timing of the sale of the Tax Abatement bonds, originally set for June 26, and has determined that it is in the best interest of the City to postpone the sale of these bonds until after the closing on the conduit bonds. It is possible (but not expected) that the closing on the conduit bonds may be pushed back beyond the June 28 date, thereby requiring some flexibility in resetting the sale date of the Tax Abatement bonds. Staff is recommending that the city council authorize the Finance Director to determine the date for a public hearing (as the Tax Abatement bonds are being issued as 501 (c) (3) bonds, a public hearing must be held in conjunction with their sale), publish notice of the hearing, and set the sale date of the Tax Abatement bonds to a date which follows the closing on the conduit bonds. It is recommended that the City Council adopt Resolution 06 -96 and 06 -97 amending the schedule for the issuance and sale of the G.O. Tax Abatement Bonds and the G.O. Utility Revenue Bonds pursuant to the provisions outlined above. OPTIONS.. 1. Adopt Resolutions 06 -96 and 06 -97. 2. Refer to Staff for further review. RECOMMENDATION Option 1