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92 <br />Jay Hartman <br />Refinancing of Public Facilities Lease Revenue Bonds, Series 2003 <br />October 25, 2011 <br />Page 2 <br />be significantly lower, thus providing annual savings to the City, beginning in 2013. In addition, <br />lease revenue bonds require a debt service reserve fund, which the City currently maintains on the <br />existing bonds. This amount is approximately $437,430 and was funded by the City's Water <br />Filtration Fund. By refinancing as general obligation bonds, these funds will no longer be <br />restricted for the City. <br />2. What is the process for the issuance of these bonds? <br />In order to utilize this type of financing, the City has to prepare a 5 -Year Capital Improvement <br />Plan (CIP) for the refinancing which is presented at a public hearing to solicit comment and <br />feedback from the community. Upon conclusion of the public hearing, the Council must <br />approve the CIP via a 3/5th vote. <br />Although a referendum is not required, a reverse referendum is allowable. If a petition bearing <br />the signatures of at least 5 percent of the votes cast in the last general election requesting a vote <br />on the issuance of the bonds is received by the municipal clerk within 30 days after the public <br />hearing, a referendum vote on the issuance of the bonds shall be called (if a vote is taken and the <br />referendum passes, the taxes would be levied on market value rather than tax capacity). It <br />should be noted that since the reason for issuing these bonds is for interest (cost) savings to the <br />community and tax payers, a reverse referendum petition is unlikely. <br />4. What is the timeline/process for the issuance of the bonds? <br />Following is the proposed schedule for the issuance of the bonds: <br />November 8, 2011: City Council holds public hearing at 8:00 p.m. on CIP Bonds and on <br />Capital Improvement Plan and adopts resolution giving preliminary <br />approval for their issuance and approving Capital Improvement Plan by <br />at least 3/5°i of the Council members <br />December 8, 2011: Reverse referendum period ends <br />December 13, 2011: City Council accepts offer for Bonds and adopts resolution approving <br />Please contact me at 651-697-8506 with any questions. <br />