Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 07/26/2010
- TITLE
- Authorizing the Issuance and Calling for the Negotiated Sale for SID 1388 Bonds
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Because of the current market conditions, a negotiated bond sale is advised for Special Improvement District (SID)1388. The City's financial advisor, Springsted recently completed a bond sale in Missoula MT for $800,000 for sidewalk bonds. Springsted talked with potential bidders before the sale and was told that because of the size of the issue and the lack of an A bond rating that the companies would not bid. DA Davidson was the sole bidder on the bond sale.
The bond issue for SID 1388 is $300,000, and will not be rated. Because of these factors, a public sale will probably not be feasible.
Upon approval on the resolution, the negotiations can proceed for the sale of the bonds.
The bond issue for SID 1388 is $300,000, and will not be rated. Because of these factors, a public sale will probably not be feasible.
Upon approval on the resolution, the negotiations can proceed for the sale of the bonds.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve resolution.
FINANCIAL IMPACT
Bond proceeds $300,000
Contributions by the City
Storm $ 36,793
Streets $ 35,274
RECOMMENDATION
It is recommended that the City Council approve the attached resolution.