The City staff has been working with Piper Jaffray and DA Davidson on the sale of bonds to finance the improvements needed at the Wastewater Treatment Plant.  On January 9th, 2016, Council approved a resolution which included authorization for the City Administrator and the City Finance Director to approve, execute and deliver to the purchaser a bond purchase agreement.  The agreement was executed on January 25th, 2016.  Council must adopt a resolution that outlines the final terms and details of the bonds.

Upon approval of the resolution, the Finance staff will proceed with the bond closing on February 22, 2017. If the Council does not approve the resolution, there would be a delay in the closing and receiving the bond proceeds, which could lead to the inability to timely pay the contractor and stopping or slowing the project.

The term of the bonds is 20 years at a interest rate of 3.295%. The debt service payment will be made from the Wastewater Fund.

Staff recommends that City Council approve the bond resolution for Series 2017 Sewer System Revenue Bonds.