In 2000, the City issued $1,700,000 in bonds for the purpose of refurbishing and rehabilitating playgrounds, basketball courts, and tennis courts in existing parks and for building bike/pedestrian trails.   The terms of the bonds were 20 years at a net interest cost of 5.53%.

Based on preliminary analysis, the City’s Financial Services Manager and Springsted Inc., the City’s financial advisor, believe that the City could achieve debt savings by refunding the Series 2000 General Obligation Bonds.  The proposed resolution authorizes the Financial Services Manager to proceed with the refunding if the predicted savings can be realized. 

The Council may:

• Approve the resolution; or
• Not approve the resolution

The Refunding Bonds are being issued to reduce future interest costs. The estimated net present value savings is $139,000, which represents a 10.73% net present value benefit for tax payers. 

Staff recommends that the City Council approve the resolution.