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Item 1.Q.
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| City Council Regular | |
| Date: | 07/10/2023 |
| Title: | Resolution Amending prior DNRC Bond Resolutions and Bond Resolution for 2023A Water System Revenue Bonds |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | WO19-12 |
RECOMMENDATION
Staff recommends City Council approve the resolution amending the prior DNRC bond resolutions, and the bond resolution for 2023A Water System Revenue bond.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City is amending the covenants with DNRC and the Montana Department of Environmental Quality. The resolution authorizes the additional bonds and states that the bonds are not secured by the reserve account.
On April 10, 2023, the Council approved the resolution authorizing the issuance and sale of bonds for the West End Reservoir. The City obtained a Moody's rating of Aa3, which attracted a large number of bidders. Sixteen bids were received and tabulated by Baker Tilley, the City's financial advisor to determine the lowest interest rate. The winning bid was submitted by BofA Securites with a true interest cost of 3.64%
On April 10, 2023, the Council approved the resolution authorizing the issuance and sale of bonds for the West End Reservoir. The City obtained a Moody's rating of Aa3, which attracted a large number of bidders. Sixteen bids were received and tabulated by Baker Tilley, the City's financial advisor to determine the lowest interest rate. The winning bid was submitted by BofA Securites with a true interest cost of 3.64%
ALTERNATIVES
There are no viable alternatives because an agreement has been made with BofA Securites to purchase the bond.
FISCAL EFFECTS
The term of the bond is 20 years with a true interest rate of 3.64%. The debt payments will be paid from the revenues collected by Public Works.