HomeMy WebLinkAboutA002 - Council Action Form dated September 11, 2007 L
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DATE 09-11-2007
COUNCIL ACTION FORM
SUBJECT: SETTING DATE OF PUBLIC HEARING FOR AUTHORIZATION TO
ISSUE ESSENTIAL GENERAL OBLIGATION CORPORATE PURPOSE
BONDS, SERIES 2007A, IN AN AMOUNT NOT TO EXCEED $9,750,000
BACKGROUND:
The budget for FY 2007/08 included General Obligation Bond funded capital
improvement projects in the amount of $6,490,000. Adjustments to budgeted projects
reduced the issuance amount slightly. We are also issuing $3,090,000 of the
$8,488,000 Outdoor Aquatic Center funding approved by the July 2007 referendum
vote. This amount is expected to cover anticipated construction costs until our next
bond issue. The Donald and Ruth Furman Aquatic Center was not included in the
budget, so repayments of the FY 07/08 principal and interest will require capitalized
interest issuance, this means we are issuing additional bonds to cover principal and
interest costs not included in our FY 2007/08 tax levy.
Projects to be funded by this issue include the following:
S. E. 16th Street Assessments (Abated) $ 1,500,000
S. E. 16th Street Paving/Bridge 800,000
Grand Avenue Extension 1,000,000
S. Dayton Avenue Realignment 1 ,050,000
Bloomington Road Widening 250,000
Collector Street Pavement Improvements 940,000
Concrete Pavement Reconstruction 300,000
Raw Well Water Loop Line (Abated by Water) 500,000
Donald & Ruth Furman Aquatic Center 3,090,000
Capitalized Interest and Issuance Costs 200,000
Total $ 9,630,000
Issuance of the bonds requires that a public hearing be held.
ALTERNATIVES:
1. Establish September 25, 2007, as the date to take action to authorize the issuance
of Essential General Obligation Corporate Purpose Bonds, Series 2007A, not to
exceed $9,750,000. The authorization above the anticipated bond needs will allow
potential buyers to bid the bonds at a premium. This will allow buyers of our bonds
to bid slightly higher than the par amount for our bonds but with a slightly higher
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interest rate. As always, we evaluate the bids for the total interest cost, taking into
account any discount or premium on the bids. Providing potential bond buyers with
flexibility in bidding can help to lower our total cost.
2. Delay the hearing on the issuance of General Obligation bonds.
MANAGER'S RECOMMENDED ACTION:
Issuance of these bonds is necessary in order to accomplish the City's approved capital
improvements this fiscal year.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby establishing September 25, 2007, as the date to take action
to authorize the issuance of Essential General Obligation Corporate Purpose Bonds,
Series 2007A, not to exceed $9,750,000.