HomeMy WebLinkAboutA016 - Council Action Form dated March 24, 2009 (redone on April 14)COUNCIL ACTION FORM
SUBJECT: SALE AND ISSUANCE
BONDS, SERIES 2009A
$8,000,000
BACKGROUND:
OR C&F 31
ITEM #:
DATE: 4-09
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Historically low short-term interest rates have provided a debt service saving opportunity
with a current refunding of five of the City's outstanding bond issues. The General
Obligation Bond Series 1998A, 1999, 2000, 2001A and 2001E can now be refunded
with an estimated net present value savings of $316,000. This refunding will result in
debt service savings of approximately $80,000 per year from FY 09/10 through FY
12/13 when the refunding issue is retired.
On the morning of March 24, 2009, the City of Ames will accept bids for the bonds per
the terms of our offering statement. The bids will be evaluated by our financial advisor,
Public Financial Management, bond counsel, and City staff to recommend award to the
bidder with the lowest cost. Council may then adopt a resolution accepting bids and
authorizing that the sale of bonds be awarded to the recommended bidder.
ALTERNATIVES:
1. City Council can adopt a resolution accepting bids and authorizing the sale and
issuance of General Obligation Refunding Bonds 2009A in an amount not to exceed
$8,000,000.
2. The Council can reject the bond sale resolution.
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Issuance of these bonds will provide significant savings in debt service costs over the
next several years.
Therefore, it is the recommendation of the City Manager that the City Council
adopt Alternative No. 1, thereby adopting a resolution accepting bids and
authorizing the sale and issuance of General Obligation Refunding Bonds 2009A
in an amount not to exceed $8,000,000.