Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 08/27/2018
- TITLE
- Bond Resolutions for EBURD Tax Increment Financing and SID 1405
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
No
PROBLEM/ISSUE STATEMENT
The City has been working with DA Davidson on the purchase of the EBURD tax increment bonds and SID 1405 bonds. Bond purchase agreements between the City of Billings and DA Davidson have been signed. These resolutions recap the resolutions passed, notices, and locations associated with this project. The details of the bonds are also set in the resolutions.
ALTERNATIVES ANALYZED
This is the final step of the bond sale. Once Council approves these resolutions, the closing will take place on September 5, 2018 and the money will be disbursed to the projects.
FINANCIAL IMPACT
The streetlight project will be financed by the SID 1405. The term of the bond is 15 years with an interest rate of 3.53%. The property owners in the district will be assessed yearly on their property tax bill.
The improvements to the streets, sanitary sewer and sidewalks will be financed by the tax increment bond. The term of the bond is 20 years with an interest rate of 3.80%. The debt service will be paid from the tax increment funds from the District.
The improvements to the streets, sanitary sewer and sidewalks will be financed by the tax increment bond. The term of the bond is 20 years with an interest rate of 3.80%. The debt service will be paid from the tax increment funds from the District.
RECOMMENDATION
Staff recommends that the City Council approve the attached bond resolutions, providing financing for the EBURD projects.