Consent 1.G.
Regular City Council Meeting
- Meeting Date:
- 10/22/2012
- TITLE
- Amend original DNRC water bond resolutions to reduce interest rates
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The City of Billings Finance Department and the City's Bond Counsel requested that the State review interest rates on outstanding and new DNRC loans. Given the current market conditions, lowering the interest rates would make the DNRC loans competitive with municipal bonds. The DNRC and the Department of Environmental Quality determined that it is in the best interests of borrowers and the program to reduce the interest rates available under the program.
It is proposed that the following interest rates be reduced:
Series 2005 Bond from 3.75% to 2.25%
Series 2009C Bond from 3.75% to 3.00%
Series 2009D Bond from 3.75% to 3.00%
Series 2010B Bond from 3.75% to 3.00%
It is proposed that the following interest rates be reduced:
Series 2005 Bond from 3.75% to 2.25%
Series 2009C Bond from 3.75% to 3.00%
Series 2009D Bond from 3.75% to 3.00%
Series 2010B Bond from 3.75% to 3.00%
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution or
- Not approve the resolution
FINANCIAL IMPACT
The estimated savings with the reduction of the interest rates is $2,636,809.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution amending the original resolutions and reducing the interest rates on the DNRC water loans.