HomeMy WebLinkAboutA020 - Council Action Form dated August 22, 2017 ITEM # 30
DATE: 08-22-17
COUNCIL ACTION FORM
SUBJECT: SALE AND ISSUANCE OF GENERAL OBLIGATION CORPORATE
PURPOSE AND REFUNDING BONDS SERIES 2017A ISSUE IN AN
AMOUNT NOT TO EXCEED $11,970,000
BACKGROUND:
The FY 2017/18 adopted budget includes General Obligation (G.O.) Bond-funded
capital improvement projects in the amount of $7,521,000. The City Council held public
hearings on the issuance of these bonds on March 7, 2017 as part of the budget
rocess, and for the refunding bonds on August 8, 2017. Council action is now required
to authorize the sale.
Projects to be funded by this bond issue include the following:
Grand Avenue Extension $ 4,000,000
South Duff Improvements 276,000
Arterial Street Improvements 620,000
Collector Street Improvements 950,000
Asphalt Street Improvements 850,000
Downtown Street Improvements 250,000
Accessibility Enhancement Program 125,000
W Lincoln Way Intersection Improvements 450,000
Subtotal Tax Supported Bonds $ 7,521,000
Refunding Bonds (2009B) 4,345,000
Issuance Cost and Allowance for Premium 104,000
Grand Total—2017/18 G.O. Issue $ 11,970,000
On the morning of August 22, 2017, 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 22 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 General Obligation Corporate Purpose and Refunding Bonds in an
amount not to exceed $11,970,000.
2. The Council can reject the bond sale resolution and delay the capital projects.
1
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 General Obligation Corporate Purpose and Refunding Bonds in an
amount not to exceed $11,970,000.
2