HomeMy WebLinkAboutA004 - Council Action Form dated February 12, 2013 - adopt a pre-levy resolution t
ITEM # 10
DATE: 02/12/13
COUNCIL ACTION FORM
SUBJECT: PUBLIC HEARING AND NOTICE OF INTENT TO ISSUE $7,750,000
ESSENTIAL CORPORATE PURPOSE GENERAL OBLIGATION BONDS,
$2,250,000 GENERAL OBLIGATION REFUNDING BONDS AND
ASSOCIATED TAX LEVY FOR DEBT SERVICE
BACKGROUND:
The FY 2013/14 budget includes a number of General Obligation (GO) Bond funded capital
improvements. A public hearing is required to authorize issuance of bonds and the levy of
property taxes for debt to be issued. The dollar amounts and corresponding property tax
levy for the planned GO bond issue are included as part of the FY 2013/14 budget.
The GO Bonds and debt service levy for the FY 2013/14 budget were based on projects
listed in the table below. A public hearing is not required for the $13,500,000 Library portion
of the planned issue, since this amount was already approved by referendum.
Authorization is required for an additional $2,250,000 to refund the Series 2005 and 2005A
Bonds with an estimated net present value savings of $86,000. Bonds will not be issued in
an amount where debt service will exceed the approved debt service levy. Council
authorization will be required at a later date to authorize the sale of the FY 2013/14
General Obligation Bonds. Bonds are expected to be issued in May to meet Library
project funding requirements and facilitate the refunding on the bond call date.
The Capital Improvements Plan's 2013/14 GO Bond Issue and planned refunding will
include the following:
Resource Recovery Improvements $ 1,355,370
Debt abated by utility revenues $ 1,355,370
Collector Street Pavement Improvements 420,000
CyRide Route Pavement Improvements 2,000,000
Downtown Street Improvements 1,000,000
Concrete pavement Improvements 1,185,000
Asphalt/Seal Coat Street Rehabilitation 470,000
Arterial Street Pavement Improvements 825,000
Grand Avenue Extension 300,000
FY 13/14 CIP Tax Supported GO Debt 6,200,000
Refunding Bonds 2,250,000
Issuance Costs & Allowance for Premium 194,630
Total GO Debt Subject to Public Hearing $ 10,000,000
Library Expansion/Renovation & Issuance Costs 13,500,000
Grand Total —2013/14 GO Issue $23,500,000
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ALTERNATIVES:
1. Adopt a pre-levy resolution authorizing the issuance of Essential Corporate Purpose
General Obligation and General Obligation Refunding Bonds in an amount not to
exceed $10,000,000 and the debt service property tax levy to pay principal and interest
on the bonds and set the date of public hearing for February 26, 2013.
2. Reject the pre-levy resolution authorizing the issuance of Essential Corporate Purpose
General Obligation Bonds, reduce the 2013/14 property tax levy, and delay the capital
projects. Rejection of the Essential Corporate Purpose Bonds will prevent the City from
completing the bond funded projects reflected in the 2013/14 CIP.
MANAGER'S RECOMMENDED ACTION:
Prior to the issuance of this debt, state law requires that this pre-levy resolution be adopted.
This is a required step in order to accomplish the Council's approved capital improvements
for the upcoming fiscal year.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby adopting a pre-levy resolution authorizing the issuance of
Essential Corporate Purpose General Obligation and General Obligation Refunding Bonds
in an amount not to exceed $10,000,000 and the debt service property tax levy to pay
principal and interest on the bonds and set the date of public hearing for February 26, 2013.
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