Authorization of Resolution for Issuance of General Obligation Crossover Refunding Improvement Bonds Series 2011B

In 2005 the City issued $4,335,000 General Obligation Improvement Bonds with an average interest rate of 4.41%.  Given current market conditions, if the city were to refund these bonds with a new bond issue the average interest rate would be 2.12% or an estimated debt service cost savings of approximately $172,000.  The savings is net of all costs and would be realized through the term of 2025.

Annually, the city receives payment from the County to cover debt service on the current issue.  The payment schedule was documented in the JPA between the City and the County in regards to the AUAR improvements in the COR project area.

The actual bond pricing is proposed to be held on October 31, 2011 and brought back to city council for consideration of the interest rate on November 1, 2011.

A copy of the proposed finance plan for the bond sale is attached.

Debt service is covered by the annual appropriation from the County.

Motion to recommend that Council adopt Resolution #11-09-XXX Authorizing the Issuance of General Obligation Crossover Refunding Improvement Bonds, Series 2011B.