Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 06/13/2011
- TITLE
- Resolution Authorizing the Issuance and Calling for the Negotiated Sale for Pooled Special Improvement Bonds
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Because of the current market conditions, a negotiated bond sale is advised for pooled Special Improvement Districts 1369 and 1391, Moore Lane and Lynn Ave. respectively.
The combined total of the two SIDs is $1,446,000 but it is anticipated there will be prepayments from the property owners in the Moore Lane SID prior to the bond sale. The prepayments will reduce the bond issue amount.
The bond amount is estimated to drop to less than $1,000,0000 with the prepayments and the bond will not be rated. Because of these factors, it reduces the marketability of the bonds and a negotiated bond sale is more cost effective than a competitive, public sale.
Upon approval on the resolution, the negotiations can proceed for the sale of the bonds.
The combined total of the two SIDs is $1,446,000 but it is anticipated there will be prepayments from the property owners in the Moore Lane SID prior to the bond sale. The prepayments will reduce the bond issue amount.
The bond amount is estimated to drop to less than $1,000,0000 with the prepayments and the bond will not be rated. Because of these factors, it reduces the marketability of the bonds and a negotiated bond sale is more cost effective than a competitive, public sale.
Upon approval on the resolution, the negotiations can proceed for the sale of the bonds.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve resolution.
FINANCIAL IMPACT
The Financial Impact will be determined after the bond sale.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing a negotiated bond sale for SIDs 1369 and 1391.