The City staff has been working with DA Davidson on the sale of bonds to finance the Phase 2 Sanitary Sewer and Orchard Lane projects in the South Billings Urban Renewal District (SBURD).  On May 23, 2016, Council approved a resolution which included authorization for the City Administrator and the City Finance Director to approve, execute and deliver to the purchaser a bond purchase agreement.  The agreement was executed on June 13, 2016.  Council must adopt a resolution that outlines the terms and details of the bonds.

Upon approval of the resolution, the Finance staff  will proceed with the bond closing on June 29, 2016. If the Council does not approve the resolution, there would be a delay in the closing and receiving the bond proceeds, which could lead to the inability to timely pay the contractor and stopping or slowing the project.

The term of the bonds is 24 years at an interest rate of 3.586%. 

The debt service payment will be made from the tax increment revenue collected in the District.

Staff recommends that City Council approve the bond resolution for Series 2016 SBURD tax increment bonds