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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR Al Rolek MEETING DATE October 22, 2012 TOPIC Consideration of Resolution 12 -105 Awarding Sale of General Obligation Bonds, Series 2012A VOTE REQUIRED Simple Majority INTRODUCTION The City has awarded a bid to construct traffic signals and related improvements at the intersections of Lake Drive and Main Street and Birch Street and Ware Road. These projects require debt financing to fund the construction of the improvements. In addition, market conditions are favorable to refinance a currently outstanding debt issue to achieve a better interest rate for this debt, thereby lowering the city's financing cost. BACKGROUND On September 24, 2012, the City Council approved Resolution No. 12 -99 authorizing the issuance of approximately $2,030,000 G.O. Bonds, Series 2012A. The purpose of the bonds is to finance traffic signal and related improvements as noted above and to refinance the outstanding balance of the G.O. Improvement Bonds, Series 2003A. It was estimated at the time that by refunding the issue that the city could achieve net present value savings of approximately $32,340 over the term of the issue, a 7.609% savings. The bond issue would have a 10 -year term and will be repaid through ad valorum taxes authorized through voter referendum and through previously levied special assessments. The City has since issued its Official Statement and advertised for bids for this issue. Bids were received earlier today by the City's financial advisors, Springsted, Inc. Terri Heaton of Springsted, Inc. is here tonight to present the results of the bidding process. The exact amount of the bonds to be sold will be determined pending the outcome of the bids. RECOMMENDATION Following Ms Heaton's presentation; staff recommends that the City Council adopt Resolution No. 12 -105 Awarding the Sale of General Obligation Bonds, Series 2012A. ATTACHMENTS Resolution 12 -105.