Consent 1.I.
Regular City Council Meeting
- Meeting Date:
- 06/10/2013
- TITLE
- Resolution Authorizing the Redemption of Outstanding Series 2003 Sewer Bonds and Issuance of Series 2013 Storm Sewer Revenue Bonds
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The Storm Sewer Series 2003 bonds will mature July 1, 2014. Using funds on hand and the debt service reserve account, the City will be able to redeem all outstanding bonds in this series on July 1, 2013.
The City will be constructing storm drain improvements at the Shiloh Conservation Area and it is necessary to issue storm sewer revenue bonds to fund the project. Piper Jaffray and Company will be working with the City to issue and sell the storm sewer bonds.
This resolution authorizes the redemption of the outstanding bonds for Series 2003. It also sets the parameters for the new bonds and allows the City to proceed with a negotiated sale with Piper Jaffray for the Series 2013 bonds.
The City will be constructing storm drain improvements at the Shiloh Conservation Area and it is necessary to issue storm sewer revenue bonds to fund the project. Piper Jaffray and Company will be working with the City to issue and sell the storm sewer bonds.
This resolution authorizes the redemption of the outstanding bonds for Series 2003. It also sets the parameters for the new bonds and allows the City to proceed with a negotiated sale with Piper Jaffray for the Series 2013 bonds.
ALTERNATIVES ANALYZED
The City Council may:
- Approve the resolution and proceed with the project and sale of the bonds; or
- Not approve the resolution and postpone the project while an alternate financing option is found.
FINANCIAL IMPACT
The old debt will be eliminated on July 1, 2013 with funds on hand. The new bond sale amount will not exceed $4,750,000. The new debt service will be paid from the storm sewer operating fund.
RECOMMENDATION
Staff recommends that the City Council approve the resolution that authorizes redeeming the Series 2003 bonds and sets issuance parameters for the proposed Series 2013.