Consent 1.C.
Regular City Council Meeting
- Meeting Date:
- 12/10/2012
- TITLE
- Parameters Resolution for Refinancing the Billings Operations Center (BOC)
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The City is working with Piper Jaffray on the refinancing of the Billings Operation Center (BOC). In 2003, the City entered into a lease purchase agreement in order to finance the construction of the Billings Operation Center on Midland Road. $6,600,000 was financed for twenty years at an interest rate of 5.14%.
It has been determined that the net present value of savings to be achieved by the refunding will be a minimum of $375,000.
It has been determined that the net present value of savings to be achieved by the refunding will be a minimum of $375,000.
ALTERNATIVES ANALYZED
Once the resolution is approved, the City can proceed with the refinancing.
FINANCIAL IMPACT
The savings will be passed on to the the departments that pay rent at the Billings Operation Center.
RECOMMENDATION
Staff recommends that Council approve the parameters resolution.