Regular 2.
Regular City Council Meeting
- Meeting Date:
- 02/28/2011
- TITLE
- Resolution Granting Preliminary Approval and Calling a Public Hearing on Rocky Mountain College Revenue Bonds
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Rocky Mountain College requests that the City issue revenue bonds to finance the costs of acquisition, construction and installation of energy efficiency improvements. The debt service payments will be made by Rocky Mountain College. The bonds will be secured by a pledge of revenues and/or assets to be determined by the City and the borrower and expressed in a loan agreement. Due to this arrangement, the bonds are special limited obligation bonds and bondholders do not have any claim on City revenues or assets in the event that the borrower defaults.
The attached resolution grants preliminary approval of the bond sale and sets a public hearing for March 28, 2011.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve resolution.
FINANCIAL IMPACT
The bonds are special, limited obligations of the City and do not create financial liability for the City or create a charge against its general credit or taxing powers. Rocky Mountain College will pay for any costs incurred by the City in connection with the sale, such as legal and bond underwriting fees.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution.