Consent 1.H.
Regular City Council Meeting
- Meeting Date:
- 11/13/2012
- TITLE
- Resolution Fixing the form and detail of the General Obligation Refunding General Obligations bonds
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The City has been working with Piper Jaffray regarding the refunding of General Obligation Series 2004A and 2007B bonds. 2004A is the Street improvement bond issue and 2007B is the donation series for constructing Dehler Park. This resolution outlines the bond terms. The City Administrator and Finance Director signed a Bond Purchase Agreement agreeing to the interest rates for the bonds.
ALTERNATIVES ANALYZED
Upon approval of the resolution, the City and Piper Jaffray will proceed with the refunding of the bonds.
FINANCIAL IMPACT
Because of favorable market conditions, the actual results of both refundings were in excess of the planned target levels. The preliminary analysis for 2004A projected a saving of $187,000, the actual net present saving is $198,470. The original interest rate was reduced from 3.50% to 1.93% Series 2007B had an estimated saving of $58,000 and the actual net present savings is $67,495. The interest rate was reduced from 4.18% to .95%
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution setting the form and terms for the refunding general obligation bonds