Consent 1.L.
Regular City Council Meeting
- Meeting Date:
- 08/22/2011
- TITLE
- Financing for Special Improvement District 1392
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
On April 25th, the Council approved the creation of Special Improvement District (SID) 1392. SID 1392 will construct park improvements to Yellowstone Family Park within Yellowstone Country Club. This will be done in two phases and there is not enough time to sell bonds and put on tax rolls. The City wishes to execute a six month Bond Anticipation Note (BAN) with US Bank and do a negotiated bond sale at a later date.
This is similar to what the City did for SIDs 1369 and 1391 setting up a BAN through the State's Intercap Loan Program. However, $1,260,000 exceeds the Intercap Loan maximum for SIDs.
This is similar to what the City did for SIDs 1369 and 1391 setting up a BAN through the State's Intercap Loan Program. However, $1,260,000 exceeds the Intercap Loan maximum for SIDs.
ALTERNATIVES ANALYZED
The Council may:
•Approve the resolution; or
•Not approve resolution.
•Approve the resolution; or
•Not approve resolution.
FINANCIAL IMPACT
The BAN of $1,058,250 will be a variable rate which provides for monthly draws which will reduce the amount of interest charges. The BAN will be paid off when bonds are sold after January 1, 2012. The interest cost incurred will not increase the $1,260,000 bond amount approved in the resolution of intent to create the district.
RECOMMENDATION
Staff recommends that City Council approve the parameters resolution for BAN with US Bank.