HomeMy WebLinkAboutA002 - Council Action form dated October 23, 2001 ITEM # 647
DATE October 23, 2001
COUNCIL ACTION FORM
SUBJECT: SETTING DATE OF PUBLIC HEARING FOR AUTHORIZATION TO ISSUE
GENERAL OBLIGATION BONDS FOR CONSTRUCTION AND EQUIPPING OF A FIRE
STATION ($1,310,000) AND REFUNDING OF GENERAL OBLIGATION BOND SERIES
1993 ($3,840,000).
BACKGROUND:
In June of 2001, the citizens of Ames approved a referendum calling for the issuance of
$1,310,000 in general obligation bonds for the construction and equipping of a new fire
station. The design of this project is progressing and construction is expected to begin in
2002.
Interest rates have fallen over the past several weeks and refunding of one of our
outstanding bond issues has now become favorable. The G.O. Bond Series 1993 can now
be refunded with an estimated net present value savings of 3.73%, or a total dollar savings
of$246,781. Net savings in debt service cost by fiscal year are as follows:
FY 2002 $ 32,708
FY 2003 $ 37,132
FY 2004 $ 37,167
FY 2005 $ 34,102
FY 2006 $ 35,977
FY 2007 $ 33,290
FY 2008 $ 36,405
ALTERNATIVES:
1. Establish November 13, 2001 as the date to take action to authorize the issuance of
General Obligation bonds not to exceed $5,150,000.
2. Delay the hearing on 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,
passing a resolution providing for the sale and issuance of the General Obligations bonds
not to exceed a total of$5,150,000. The issues will be combined to save issuance costs.
COUNCIL ACTION: