HomeMy WebLinkAboutA028 - Council Action Form dated August 11, 2015, Item #13 ITEM # 13
DATE: 8-11-15
COUNCIL ACTION FORM
SUBJECT: RESOLUTION APPROVING OFFICIAL STATEMENT FOR GENERAL
OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2015A, SETTING
DATE OF SALE FOR AUGUST 25, 2015, AND AUTHORIZING ELECTRONIC
BIDDING FOR THE SALE
BACKGROUND:
The 2015/16 budget and Council-approved changes include General Obligation (G.O.) Bond-
funded capital improvement projects in the amount of $14,253,975. The City Council held public
hearings on the issuance of these bonds and refunding bonds on March 3, 2015, as part of the
budget process, and on July 14, 2015, to include an additional amount for the Grant Avenue
extension project. Council action is now required to approve the official statement, set the date
of sale for August 25, 2015, 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:
East Industrial Area Sewer Extension $ 2,000,000
ISU Research Park Improvements 2,938,990
Grant Avenue Extension (Assessment) 360,985
Airport Terminal 943,000
Debt to be Abated by Other Revenues $ 6,242,975
Flood Mitigation $ 144,000
West Lincoln Way Improvements 450,000
Asphalt Street Improvements 1,300,000
Grand Avenue Extension 280,000
Concrete Pavement Improvements 1,100,000
Arterial Street Pavement Improvements 400,000
Downtown Street Pavement Improvements 800,000
Seal Coat Pavement Improvements 350,000
Bridge Rehabilitation Program 2,320,000
Airport Terminal Building 867,000
Subtotal Tax Supported Bonds $8,011,000
Refunding Bonds 5,950,000
Issuance Cost and Allowance for Premium 1,141,025
Grand Total Not to Exceed—2015/16 G.O. Issue $21,345,000
ALTERNATIVES:
1. Adopt a resolution approving the Official Statement for General Obligation Corporate
Purpose Bonds, Series 2015A, setting the date of sale for August 25, 2015, 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.
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