Title
Approving a resolution with the caption reading: RESOLUTION APPROVING PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING DISTRIBUTION OF SUCH PRELIMINARY OFFICIAL STATEMENT RELATING TO THE CITY'S COMBINATION TAX AND LIMITED REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017A, SERIES 2017B, AND LIMITED TAX BONDS SERIES 2017, AND REFUNDING BONDS SERIES 2017.
Summary
This resolution is the next step in the process of issuing debt. The City will be issuing certificates of obligation (CO) of up to $19.2 million for utility wastewater projects, Series A; certificates of obligation of up to $2.3 million to reimburse the developer for TIRZ projects, Series B. In addition, up to $18.744 million of general obligation (limited tax) bonds will be issued for street and park projects authorized by citizens in the 2014 and 2015 bond elections. The portion related to the 2014 election includes $7.5 million for streets and $4.6 million for parks, while $6.6 million is for street projects approved in the 2015 election. After this issuance, all debt authorized in the 2014 and 2015 elections will be issued.
At the September 12, 2017 Council meeting, a resolution was approved to begin the process for issuing the Combination Tax and Limited Revenue Certificates of Obligation, Series 2017A, Series 2017B, and Taxable Series 2017C. Further discussions with the Financial Advisor indicated that the issuance of the Taxable Series 2017C, to reimburse the City for TIRZ projects, was not necessary. The remaining reimbursement to the City, approximately $660,000, will be funded directly from future TIRZ funds, without the need for a debt issuance.
Current market conditions appear favorable to pay off certain previously issued bonds by refinancing the outstanding principal and obtaining a lower interest rate on the new debt. 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 ra...
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