#08 - 2023 Bonds - Laserfiche WebLink

Home Browse Search

Northland Securities, Inc. Page 2 Executive Summary The following is a summary of the recommended terms for the issuance of $5,875,000 General Obligation Improvement & Utility Revenue Bonds, Series 2023A (the “Bonds”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations. Purpose Proceeds from the Bonds will be used to finance the City’s 2023 street and utility projects and to pay costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties for payment, net revenues of the sewer and water utilities and ad valorem taxes for payment on the Bonds. Repayment Term The Bonds will mature annually each February 1 in the years 2024 through 2038. Interest on the Bonds will be payable on February 1, 2024, and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate True interest cost (TIC): 3.53% Prepayment Option Bonds maturing on and after February 1, 2032, will be subject to redemption on February 1, 2031, and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Moody’s Investor Services (“Moody’s”). The City’s general obligation debt is currently rated "Aa1” by Moody’s. Tax Status The Bonds will be tax-exempt, bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Public Sale – Competitive Bids Proposals Received Tuesday, June 6, 2023 @ 10:00 A.M. Council Consideration Tuesday, June 6, 2023 @ 7:00 P.M.