Regular 7.
Regular City Council Meeting
- Meeting Date:
- 01/12/2015
- TITLE
- Parameters Resolution for the Refunding of General Obligation Bonds Series 2007A
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
City staff is working with Piper Jaffray on refunding the Series 2007A General Obligation bonds. The Series 2007A bonds were issued for the construction of Dehler Park and is the bond series that is paid from annual tax assessments. The bonds were issued for $10,700,000 for twenty years with an interest rate of 4.47%. Refunding will produce cost savings by lowering the interest rate. The proposed resolution authorizes the Finance Director to proceed with refunding the bonds in a negotiated sale. The new bonds will not exceed the original bonds end date.
Council passed a similar resolution in November, 2014, but City staff, at the recommendation of bond counsel, switched underwriters so it will need Council approval with the new underwriter.
Council passed a similar resolution in November, 2014, but City staff, at the recommendation of bond counsel, switched underwriters so it will need Council approval with the new underwriter.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve the resolution
FINANCIAL IMPACT
Based on preliminary market analysis, the estimated net present savings would exceed $200,000.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing the sale .