HomeMy WebLinkAboutA004 - Council Action Form dated March 3, 2009 ITEM # 14
DATE 03/03/09
COUNCIL ACTION FORM
SUBJECT: SETTING PUBLIC HEARING DATE FOR ISSUANCE OF GENERAL
OBLIGATION REFUNDING BONDS 2009A
BACKGROUND:
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 2001B 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.
ALTERNATIVES:
1. Establish March 24, 2009 as the date for a public hearing on the proposal to
authorize the issuance of General Obligation refunding bonds in an amount not to
exceed $8,000,000.
2. Delay the hearing on the issuance of General Obligation refunding bonds.
MANAGER'S RECOMMENDED ACTION:
This refunding is expected to result in substantial savings in property tax funded debt
service expense over the next four years. Therefore, it is the recommendation of the
City Manager that the City Council adopt Alternative No. 1, thereby establishing March
24, 2009 as the date for a public hearing on the proposal to authorize the issuance of
General Obligation refunding bonds in an amount not to exceed $8,000,000.