City staff recommends that City Council approve the resolution authorizing the public sale for refunding the Library General Obligation Bonds. If approved, the Council is authorizing the City to sell and issue general obligation bonds with an aggregate principal amount of $8,350,000.

On November 8, 2011, the voters authorized the City to issue and sell general obligation bond for the purpose of paying the cost of constructing and equipping a new library building.  The call date on the original bonds is approaching, and are now eligible for refunding. Based upon current market conditions and the City's favorable bond rating (Aa2 - Moody's October 2019) the City has an opportunity to refinance the bonds at a lower interest rate. The estimated savings would be approximately $1,000,000 in present value savings based on current market conditions.   

The City will offer and sell the bonds at a public competitive sale using a sealed bid. The award of the sale will be made to the bidder with the lowest true interest cost. The bids will be accepted on April 12th, 2021, and will be tabulated and presented at the Council meeting on that night. 

City Council may:

• Approve; or,
• Not Approve the resolution and not refund the Library G.O. Bonds

The term of the bond will remain the same, maturing in 2032.  The actual interest rate, and net savings, will be determined at the time of the sale and presented to Council.  The reduced interest rate will result in a lower number of mills levied on taxable property within the city limits.