Staff recommends that City Council approve the resolution authorizing the sale and prescribing the form and terms for the refunding bonds for the Expanded North 27th Street Urban Renewal Area. 

 In April, council approved a resolution authorizing a private negotiated sale for the refunding of 2013A tax increment bonds.  It has been determined by refunding the 2013A bonds, the City will save $559,033.  Once the council approves this resolution, the closing can take place on June 13th and the bond proceeds will be distributed to the escrow account to refund the 2013A bonds on September 10, 2024. 

There are no viable alternatives as the City has signed a bond purchase agreement with Stifel, Nicolaus & Company for the sale of the bonds.  

The April 8th parameters resolution set limitations on the maximum aggregate principal of $8,500,000, a true interest rate less than 4.5%, the underwriter's discount not to exceed 1.3% of the principal amount,  Stifel, Nicolaus & Company agreed to purchase the Series 2024A Bonds at the aggregate purchase price of $7,505,404.75 (representing the par amount of the Series 2024A Bonds, less underwriter’s compensation of $69,300.00 and plus original issue premium of $644,704.75) The true interest rate on the bonds is 3.955% with final maturity on July 1, 2038. 

The debt service payments will be paid from the tax increment funds from the district. Due to the savings resulting from this refunding, the annual debt service payment will be reduced by approximately $80k per year.