HomeMy WebLinkAboutA016 - Council Action Form dated October 24, 2023 ITEM #: 16
DATE: 10-24-23
DEPT: FIN
COUNCIL ACTION FORM
SUBJECT: RESOLUTION AUTHORIZING AND APPROVING A LOAN AGREEMENT,
PROVIDING FOR THE SALE AND ISSUANCE OF GENERAL
OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2023D, AND
PROVIDING FOR THE LEVY OF TAXES TO PAY THE SAME
BACKGROUND:
The FY 2023/24 Budget includes General Obligation (G.O.) Bond-funded capital
improvement projects in the amount of $12,870,000. The City Council held a public
hearing on the issuance of these bonds on April 11, 2023. Separately, on September 14,
2021, the City Council held a public hearing for the issuance of G.O. Bonds to fund a
capital improvement project for the Indoor Aquatic Center. Council action is now required
to authorize the sale.
Projects to be funded by this bond issue include the following:
Arterial Street Pavement Improvements 1,500,000
Asphalt Street Pavement Improvements 3.000,000
Concrete Pavement Improvements 950.000
Collector Street Pavement Improvements 1.200,000
Seal Coat Street Pavement Improvements 1.750,000
South 16th Street Road Widening 325.000
Campustown Public Improvements 1,200.000
Alley Pavement Improvements 400.000
Intelligent Transportation System 468.300
Traffic System Capacity Improvements 370.000
Indoor Aquatic Center (Essential Purpose URA) 1.000.000
Park System Facility Improvements (General Corporate Purpose) 500.000
Subtotal Tax Supported Bonds $12,663.300
Estimated Issuance Costs 206.700
Grand Total — 2023/24 GO Issue $12,870,000
On the morning of October 24, 2023, 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 October 24, 2023
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 Bonds in an amount not to exceed $12,870,000.
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. 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 Bonds in an
amount not to exceed $12,870,000.