HomeMy WebLinkAboutA008 - Council Action Form dated August 26, 2014 and September 9, 2014 Old CAF �
I - 29 `TT
DATE: 08-5:- 4-
COUNCIL ACTION FORM
SUBJECT: SALE AND ISSUANCE OF ESSENTIAL CORPORATE PURPOSE
GENERAL OBLIGATION BONDS SERIES 2014 ISSUE IN AN AMOUNT
NOT TO EXCEED $9,985,000
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
authorize the sale.
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
On the morning of August 26, 2014, the City 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, by the City's Bond Counsel, and by City staff to recommend
award to the bidder with the lowest cost. A report of bids will be provided to Council at
the August 26 meeting. The City Council will then be asked to adopt a resolution
accepting bids and authorizing that the sale of bonds be awarded to the chosen bidder.
ALTERNATIVES:
1. The City Council can adopt a resolution accepting bids and authorizing the sale and
issuance of Essential Corporate Purpose General Obligation Bonds in an amount not to
exceed $9,985,000.
2. The Council can reject the bond sale resolution and delay the capital projects.
MANAGER'S RECOMMENDED ACTION:
Issuance of these bonds is necessary in order to accomplish the City's approved capital
improvements during this fiscal year and savings can be realized by bond refunding.
Therefore, it is the recommendation of the City Manager that the City Council accept Alternative
No. 1, thereby adopting a resolution accepting bids and authorizing the sale and issuance of
Essential Corporate Purpose General Obligation Bonds in an amount not to exceed $9,985,000.