HomeMy WebLinkAboutA003 - Council Action form dated July 27, 2005 - ITEM # /3
DATE JuIV 26, 2005
COUNCIL ACTION FORM
SUBJECT: SETTING DATE OF PUBLIC HEARING FOR AUTHORIZATION TO ISSUE
ESSENTIAL GENERAL OBLIGATION CORPORATE PURPOSE AND REFUNDING
BONDS, SERIES 2005A, IN AN AMOUNT NOT TO EXCEED $5,600,000
BACKGROUND:
The budget for FY 2005/06 included General Obligation Bond funded capital improvement
projects in the amount of $3,619,000.
Projects to be funded by this issue include the following:
Fire Apparatus $ 79,000
East Lincoln Way Widening 425,000
Arterial Street Rehab (241h & Stange) 500,000
West Lincoln Way Intersection Improvements 65,000
West Lincoln Way Widening 700,000
U.S. 69 Intersection Improvements 200,000
CyRide Route Reconstruction (Welch) 750,000
Collector Street Rehabilitation 480,000
Concrete Pavement Reconstruction 420,000
Potential Refunding and Issuance Cost 1,981,000
Total $ 5,600,000
A possible refunding of G.O. Bond Series 1997A has also been identified. Further
analysis on the refunding will be provided to City Council prior to proceeding with this
portion of the sale. Current Council action is to authorize issuance. Prior to the August
9 public hearing, we will review the issue and will recommend the refunding bonds only
if there are sufficient debt service savings. Typically, we provide more advance notice
on refunding bonds, but with the small amount outstanding, combining the refunding
with our FY 2005/06 bond issue will save on fees. Issuing refunding bonds alone will
provide less net debt service savings.
ALTERNATIVES:
1. Establish August 9, 2005, as the date to take action to authorize the issuance of Essential
General Obligation Corporate Purpose and Refunding Bonds, Series 2005A, not to exceed
$5,600,000.
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,
establishing August 9, 2005, as the date to take action to authorize the issuance of Essential
General Obligation Corporate Purpose and Refunding Bonds, Series 2005A, not to exceed
$5,600,000.
Whether or not we proceed with the refunding portion of the issue will be based on a further
analysis by staff of the projected debt service savings. This analysis will be completed prior to
our August 9th public hearing.
COUNCIL ACTION: