HomeMy WebLinkAboutA030 - Council Action Form dated August 10, 2021 ITEM # 17
DATE: 08-10-21
COUNCIL ACTION FORM
SUBJECT: SALE AND ISSUANCE OF ESSENTIAL CORPORATE PURPOSE
GENERAL OBLIGATION AND REFUNDING BONDS SERIES 2021A
ISSUE IN AN AMOUNT NOT TO EXCEED $22,405,000
BACKGROUND:
The FY 2021/22 adopted budget includes General Obligation (G.O.) Bond-funded capital
improvement projects in the amount of $11,055,400. The City Council held a public
hearing on the issuance of these bonds and for the refunding of bonds on February 23,
2021 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:
Arterial Street Pavement Improvements (N. Dakota/Ontario) $ 800,000
Collector Street Pavement Improvements (Hoover Avenue) 2,400,000
Concrete Pavement Improvements 3,500,000
Asphalt Street Pavement Improvements 2,500,000
Seal Coat Pavement Improvements 750,000
Downtown Pavement Improvements (Duff to Sherman Alley) 245,000
Intelligent Transportation System 160,400
Downtown Plaza -General Corporate Purpose- 700,000
Subtotal Tax Supported Bonds $11,055, 00
Refunding Bonds 11,055,000
Estimated Issuance Costs 294,600
Grand Total—2021/22 G.O. Issue $22,405,000
On the morning of August 10, 2021, the City will accept bids for the bonds per the
terms of our offering statement. The bids will be evaluated by our financial advisor,
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 10, 2021
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 and Refunding Bonds in
an amount not to exceed $22,405,000.
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 and Refunding Bonds
in an amount not to exceed $22,405,000.