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HomeMy WebLinkAboutA001 - Council Action Form dated May 13, 1997 ITEM # DATE May 13, 1997 COUNCIL ACTION FORM SUBJECT: HEARING FOR THE ISSUANCE OF 1997 GENERAL OBLIGATION BONDS NOT TO EXCEED $5,600,000 BACKGROUND: The following projects are included in this general obligation issue: Streets: U. S. 69 Improvements $ 170,000 Hyland Avenue Reconstruction 927,000 Airport Road Reconstruction 1 ,400,000 Airport Road Special Assessment 100,000 Arterial Street Rehabilitation 1 ,000,000 E. Lincoln Way Rehabilitation 500,000 W. Lincoln Way Rehabilitation 450,000 Cy-Ride Route Reconstruction 500,000 Storm Sewer: Annual Low Point Drainage 100,000 Freel Drive 210,000 Sub-Total $ 5,357,000 Estimated Issuance Costs 203,000 Total $ 5,560,000 These projects are those expected to be undertaken during the 1997 construction season. They include projects approved in the 1996-97 and 1997-98 CIP's. As estimated, this issue will increase the total outstanding G. O. debt of the City to $32,205,000. Total debt service for 1997-98 was budgeted at $5,933,459, of which $911 ,234 was to be the first payment for this issue. Actual 97-98 debt service for this issue is projected to be $720,865. The excess budgeted ($190,369) will be used for future debt service. ALTERNATIVES: 1 . Approve the issuance of general obligation bonds in an amount not to exceed $5,600,000 and authorize the City Manager and Finance Director to set the date of sale. 2. Delay the issuance of general obligation bonds. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council adopt Alternative # 1, approving the issuance of general obligation bonds in an amount not to exceed $5,600,000 and authorize the City Manager and Finance Director to set the date of sale. COUNCIL ACTION: