HomeMy WebLinkAboutA003 - Council Action Form dated August 23, 2016 4 '
ITEM # 31
DATE: 08-23-16
COUNCIL ACTION FORM
SUBJECT: SALE AND ISSUANCE OF ESSENTIAL CORPORATE PURPOSE
GENERAL OBLIGATION BONDS SERIES 2016A ISSUE IN AN
AMOUNT NOT TO EXCEED $12,705,000
BACKGROUND:
The 2016/17 budget and Council-approved changes include General Obligation (G.O.)
Bond-funded capital improvement projects in the amount of $5,945,000. The City
Council held public hearings on the issuance of these bonds and refunding bonds on
March 1, 2016, 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:
East Industrial Utility Extension $ 3,300,000
Debt Abated by other Revenues $ 3,300,000
Flood Mitigation 500,000
Storm Water Erosion Control 250,000
Asphalt Street Improvements 1,250,000
Grand Avenue Extension 1,300,000
Concrete Pavement Improvements 1,050,000
Arterial Street Pavement Improvements 345,000
Downtown Street Pavement Improvements 375,000
CyRide Route Improvements 525,000
Bridge Rehabilitation Program 350,000
Subtotal Tax Supported Bonds $ 5,945,000
Refunding Bonds 3,335,000
Issuance Cost and Allowance for Premium 125,000
Grand Total—2016/17 G.O. Issue $ 12,705,000
On the morning of August 23, 2016, 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 23 meeting. The City Council will then be
asked to adopt a resolution accepting bids and authorizing award of the sale of
bonds 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 $12,705,000.
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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 $12,705,000.