Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 02/25/2013
- TITLE
- Billings Operations Center (BOC) Refinancing Bond Resolution and Agreements
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
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%. The average annual interest rate that is achieved by refinancing is 2.97%, resulting in a net present value savings of $493,600. Because of favorable market conditions, the savings exceeded the original estimate of $375,000.
ALTERNATIVES ANALYZED
Once the resolution is approved, the City can proceed with the bond closing.
FINANCIAL IMPACT
The savings will be passed on to the the departments that pay for the debt through their rent at the Billings Operation Center.
RECOMMENDATION
Staff recommends that Council approve the bond resolution and agreements.