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AGENDA ITEM #: 13.
DATE: 03/22/2021
CAR #: {ud_fi4}

CITY COUNCIL ACTION REPORT

SUBJECT:

AUTHORIZING THE ISSUANCE OF THE CITY OF GOODYEAR GENERAL OBLIGATION BONDS FOR MUNICIPAL BUILDINGS IN THE AMOUNT NOT TO EXCEED $45,195,000

STAFF PRESENTER(S):

Jared Askelson, Finance Manager

OTHER PRESENTER(S):

None.

SUMMARY:

This action authorizes the sale, issuance, and delivery of City of Goodyear, Arizona, General Obligation Bonds, Series 2021 (“Bonds”) in the amount not to exceed $45,195,000 for the purpose of constructing Public Buildings.

Recommendation:

ADOPT RESOLUTION NO. 2021-2134 AUTHORIZING THE ISSUANCE AND SALE OF CITY OF GOODYEAR, ARIZONA, GENERAL OBLIGATION BONDS, SERIES 2021; DELEGATING THE AUTHORITY TO APPROVE CERTAIN MATTERS WITH RESPECT TO THE BONDS; PROVIDING FOR THE ANNUAL LEVY OF A TAX FOR THE PAYMENT OF THE BONDS; APPOINTING A REGISTRAR AND PAYING AGENT FOR THE BONDS; APPROVING THE FORM OF CERTAIN DOCUMENTS AND AUTHORIZING COMPLETION, EXECUTION AND DELIVERY THEREOF; DELEGATING THE AUTHORITY TO APPROVE AND DEEM FINAL A FORM OF OFFICIAL STATEMENT; RATIFYING ALL ACTIONS TAKEN AND TO BE TAKEN WITH RESPECT TO THE BONDS IN FURTHERANCE OF THIS RESOLUTION; AND AUTHORIZING ANY NECESSARY BUDGET TRANSFERS RELATED TO THE BONDS AND THE PROJECTS FINANCED THEREBY. (Jared Askelson, Finance Manager)

FISCAL IMPACT:

The issuing of the Bonds will result in an annual debt service payment of approximately $3.4 million. The timing of the payments is designed to keep the total tax rate (Primary and Secondary) at or below $1.74 based on current projections in accordance with the Council’s adopted financial policies. Ad valorem property taxes will secure the payment of the Bonds and debt service payments will be made from the secondary property tax levy. The $45,195,000 generated from the sale of the bonds will be used to fund the Civic Square project.

BACKGROUND AND PREVIOUS ACTIONS:

Voters in the City approved the issuance of general obligation (“GO”) bonds of the City at special bond elections held on May 17, 1988, March 8, 1994, September 12, 2000, and September 7, 2004. The City has previously issued GO bonds authorized at the respective special bond elections, and now desires to issue additional GO bonds to finance certain improvements for the public benefit of the City.

STAFF ANALYSIS

The Bonds will be issued in an aggregate original principal amount not to exceed $45,195,000, with a yield not exceeding 4.00%, and a maximum maturity not to exceed July 1, 2041. The Bonds are secured by ad valorem property taxes without limit as to rate or amount, however it is estimated that the resulting total property tax rate will not exceed $1.74 in accordance with adopted financial policies.

The issuance of the Bonds will provide funds to finance the construction, acquisition, equipping and improvement of the Civic Square project. The Bonds were approved by the voters of the City. City staff has consulted with Hilltop Securities Inc., as financial advisor to the City, with respect to the ad valorem property tax impact related to the Bonds. City staff and bond counsel has reviewed the proposed issuance and sale of the Bonds, and finds that the Bonds will finance needed infrastructure for the City and the contemplated transaction is in compliance with State of Arizona law and City policies.

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