Title
Approving a resolution with caption reading: RESOLUTION APPROVING PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING DISTRIBUTION OF SUCH PRELIMINARY OFFICIAL STATEMENT RELATING TO THE CITY'S COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2010, LIMITED TAX BONDS, SERIES 2010 AND LIMITED TAX REFUNDING BONDS, SERIES 2010.
Summary
This resolution is the next step in the process of issuing debt. The City will be issuing $2,000,000 in general obligation (limited tax) bonds for the library expansion; $4,200,000 in certificates of obligation for the Stone Hill economic incentive; and limited tax refunding bonds, if the market conditions remain favorable. City staff, the City’s financial advisor and the City’s bond counsel have been updating the official statement which is the informational document that is sent to prospective investors. This resolution will approve the preliminary official statement and authorize its distribution. A copy of the preliminary official statement will be delivered to the City Council prior to this meeting. A copy of the final official statement will be given to each City Councilmember when it is complete.
This resolution includes the necessary language to issue refunding bonds. Current market conditions are favorable to pay off certain bonds by refinancing the outstanding principal. The decision whether or not to issue refunding bonds will be made at the time of the bond sale and will depend on the net present value calculated on market rates on that day.
Prior City Council Action
At the September 28 City Council meeting, a resolution was approved to begin the process for issuing the Combination Tax and Revenue Certificates of Obligation, Series 2010.
Deadline for City Council Action
To meet the deadlines established for issuing the bonds on November 9, 2010, the preliminary official statement must be approved at this meeting.
Projected Future City Council Action
On November 9, 2010, a Public Hearing will be held and the sale of the bonds will be finalized.
Fiscal Impact
The fiscal impact of issuing debt has been included in the FY 2011 Approved Budget. If refunding bonds are issued, the fiscal impact will be a reduction in debt service.
Staff Recommendation
Approve the resolution.
Drafter
Beth C. Davis, Finance Director