Regular 2.
Regular City Council Meeting
- Meeting Date:
- 02/23/2015
- TITLE
- Resolution Determing the Form and Detail for General Obligation Refunding Bonds Series 2007A
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
City staff worked with Piper Jaffray on refunding the Series 2007A General Obligation bonds. The Series 2007A bonds were issued for the construction of Dehler Park. It is the bond series that is paid from annual tax assessments, while Series B is supported by donations. The original bonds were issued for $10,700,000 for twenty years with an interest rate of 4.47%. A bond purchase agreement was signed on February 11th.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve the resolution and delay the bond closing
FINANCIAL IMPACT
The true interest cost was 2.137% which represents a net present value savings of $467,877 over the remaining life of the bonds. The original bonds will be eligible for redemption on July 1, 2017. At that time, the savings will be passed on to the taxpayers.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution determining the form and detail of the bonds.