HomeMy WebLinkAboutA002 - Council Action Form dated August 12, 2014 - Approving statement for GO Bonds, Series 2014 ITEM # 16
DATE: 08-12-14
COUNCIL ACTION FORM
SUBJECT: RESOLUTION APPROVING OFFICIAL STATEMENT FOR GENERAL
OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2014, SETTING
DATE OF SALE FOR AUGUST 26, 2014, AND AUTHORIZING ELECTRONIC
BIDDING FOR THE SALE
BACKGROUND:
The 2014/15 budget includes General Obligation (G.O.) Bond funded capital improvement
projects in the amount of $9,840,000. The City Council held a public hearing on issuance of
these bonds on March 4, 2014 as part of the budget process. Council action is now required to
approve the official statement, set the date of sale for August 26, 2014, and authorize electronic
bidding.
The Official Statement, or "Preliminary Official Statement", is the offering document for
municipal securities, in preliminary form, which does not contain pricing information. The
Statement provides several financial disclosures and information about the City. This
"Preliminary Official Statement" is on file in the City Clerk's Office and can be viewed on the
City's Website. Additionally Council is asked to approve electronic bidding as the method to
provide a secure and highly competitive process for the sale of the bonds.
Projects to be funded by this bond issue include the following:
Street Improvements $ 6,884,750
Bridge Rehabilitation 180,000
Storm Sewer 300,000
Grant Avenue Paving (abated by special assessments) 2,175,250
Resource Recovery Improvements (abated by RR revenue) 300,000
Subtotal $ 9,840,000
Issuance Cost/Allowance for Sale at Premium 145,000
Total Debt Issue $ 9,985,000
ALTERNATIVES:
1. Adopt a resolution approving the Official Statement for General Obligation Corporate
Purpose Bonds, Series 2014, setting the date of sale for August 26, 2014, and authorize
electronic bidding for the sale.
2. Refer the Official Statement back to City staff for modifications.
MANAGER'S RECOMMENDED ACTION:
Issuance of these bonds is necessary in order to accomplish the City's approved capital
improvements for the current fiscal year.
Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative
No. 1 as stated above.