10/27/2003 Council Packet - Laserfiche WebLink

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T • • AGENDA ITEMS 3E & 3F STAFF ORIGINATOR Al Rolek MEETING DATE October 27, 2003 TOPIC Consideration of Resolution 03 -194 Providing for the Issuance and Sale of $2,120,000 G.O. Improvement Refunding Bonds, Series 2003A and Resolution 03 -195 Providing for the Issuance and Negotiated Sale of $250,000 Taxable G.O. Improvement Bonds, Series 2003A VOTE REQUIRED Simple Majority The City Council has approved public improvement projects for Elm Street Reconstruction, Twilight Acres Watermain and Century Farm Lift Station. In addition, the interest rate environment has made it advantageous for the City to refund its G.O. Improvement Bonds Series 1996A along with the financing of the new projects. To finance the improvements to be made in these projects and perform the refunding it is necessary to issue and sell General Obligation Improvement and Refunding bonds. Our financial advisor, Springsted, Inc., has issued their recommendation for the issuance of $2,120,000 G.O. Improvement and Refunding Bonds Series 2003A. If approved the sale would occur on November 24, 2003, with consideration for award by the City Council at it's meeting the same day. The issue would have a 15 -year term running from 2005 through 2019 and would be repaid through the levy of special assessments against the benefitted parcels. The City Council has also approved the 21st Avenue Street and Storm Sewer project in cooperation with the City of Centerville. Lino Lake's cost for this project is approximately $240,000. Since this project lies in a Charter- exempt zone, provisions of the Charter make it necessary to issue taxable bonds for this project. Further, due to the size of the issue, Springsted, Inc. has recommended selling the bonds in a negotiated sale to a local bank rather than a competitive bid. Negotiating the sale of the bonds will avoid some of the normal issuance costs and likely save money on the transaction. The negotiation would take place no later than December 1, 2003. Springsted, Inc. has issued their recommendation for the issuance of $250,000 Taxable G.O. Improvement and Refunding Bonds Series 2003B. Staff Recommendation is for the City Council, in separate actions, to approve Resolution 03 -194 Providing for the Issuance and Sale of $2,120,000 G.O. Improvement and Refunding Bonds, • Series 2003A, and to approve Resolution 03 -195 Providing for the Issuance and Sale of $250,000 Taxable G.O. Improvement Bonds, Series 2003B.