Staff recommends that City Council approve the resolution authorizing the issuance and private negotiated sale for refunding the Series 2013A Tax Increment bonds.

Tax Increment Series 2013A bonds were issued in 2013 to finance the acquisition, design and construction of the Empire Garage. Based upon current market conditions, the City may have an opportunity to refinance the bonds at a lower true interest rate.  The estimated net present value savings will be approximately $200,000 to $300,000 over the life of the bonds, based on current market conditions. If market conditions change, such that refunding would not be beneficial, the City Finance Department will not pursue the refunding. The parameters resolution will authorize the refunding of the Series 2013 bonds so long as the true interest cost is less than 4.5%. 

On January 22, 2024, the Council approved a resolution authorizing the sale of tax increment bonds to fund the construction of one-way to two-way street conversion and a pedestrian walking bridge in the downtown district.   The refunding bonds and the new TIF bonds are expected to be issued simultaneously and may be combined in a single series of bonds.  




 

City Council may:

• Approve; or,
• Not Approve the resolution and not refund the 2013A bonds

The actual interest rate and net savings will be determined at the time of negotiations.