HomeMy WebLinkAboutA007 - Council Action Form dated August 9, 2005 o L" '� a�
ITEM #
DATE August 9, 2005
COUNCIL ACTION FORM
SUBJECT: SALE AND ISSUANCE OF ESSENTIAL CORPORATE PURPOSE
GENERAL OBLIGATION BONDS FOR STREET AND FIRE APPARATUS
PROJECTS PER THE CITY CAPITAL IMPROVEMENT PROGRAM AND
REFUNDING BONDS, SERIES 2005A ISSUE AMOUNT NOT TO EXCEED
$5,495,000
BACKGROUND:
The budget for FY 2005/06 included General Obligation Bond funded capital
improvement projects in the amount of $3,619,000. In addition, a review of
outstanding bond issues has indicated that savings can be realized by refunding
the 1997A Bond issue. Present value savings is estimated at just under $50,000
at current interest rates. Issuing the refunding bonds with our essential corporate
purpose issue will reduce issuance fees, improving our savings on the refunding.
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
Refunding of Series 1997A 1,800,000
Issuance Costs 76,000
Total $ 5,495,000
ALTERNATIVES:
1 . Pass a resolution providing for the sale and issuance of Essential Corporate
General Obligation bonds not to exceed $5,495,000.
2. Reject the bond sale resolution.
MANAGER'S RECOMMENDED ACTION:
The Manager's recommendation will be made at the Council meeting after the
receipt and analysis of bids.
COUNCIL ACTION: