Regular 3.
Regular City Council Meeting
- Meeting Date:
- 10/09/2012
- TITLE
- Parameters Resolution for the Refunding of General Obligation Bonds Series 2004A and 2007B
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
Two General Obligation bonds are candidates for refunding with a present value savings of over 3%.
- Series 2004A was issued to finance work on Zimmerman, South Billings Boulevard and Alkali Creek Road. The bond was issued in 2004 for $5,200,000 for 20 years with an interest rate of 3.5%. Based on preliminary market analysis, the estimated net present savings is $187,000.
- Series 2007B was one of the two bonds issued for the construction of Dehler Park. The bond was issued for $1,800,000 for ten years with an interest rate of 4.18%. Based on preliminary market analysis, the estimated net present savings is $58,800.
The proposed resolution authorizes the Finance Director to proceed with the refunding of the bonds in a negotiated sale.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution: or
- Not approve the resolution
FINANCIAL IMPACT
The refunding bonds are being issued to reduce future interest costs.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing the sale .