From
Brady Olsen, Treasury and Debt Manager
Title
Consideration of all matters incident and related to a resolution approving and authorizing publication of notice of intention to issue Series 2021 Certificates of Obligation, including the adoption of a resolution pertaining thereto
Presenter
Becky Brooks, Chief Financial Officer
Recommended Action
Approve
Analysis
Staff currently plans to issue debt in accordance with the working Capital Improvement Program (CIP) for Fiscal Year (FY) 2020-2021. Combination Tax and Revenue Certificates of Obligation (CO's) totaling approximately $25,500,000 will be issued on January 5, 2021. Of this, $22,500,000 will fund the usual CIP with an additional $3,000,000 for downtown.
The purpose and use of the funds as outlined in the working CIP include fire-fighting facilities and equipment, library facilities and equipment, new construction and renovations to municipal facilities, street improvements including related costs of rights of way and costs incidental to street improvements, and engineering and design associated with these projects. In order to maintain long term flexibility, we may front load a portion of the principal for the coming year.
State law requires that in order to issue CO's, a notice of intent must be published once a week for two consecutive weeks in a newspaper having general circulation in the City. The first notice of intent must be published at least 45 days prior to the sale date.
The City's bond counsel, Norton Rose Fulbright, prepared the resolution which authorizes the City to issue an amount not to exceed $28,000,000 for City purposes. The resolution amount is greater than the bond sale amount in case market changes increase the size of the sale due to issuing bonds at a discount.
The F&G committee reviewed the plan of finance on November 3rd and recommended the city move forward with it.
Financial Consideration
Prior to the voting on the ordinance for these bonds, Council wi...
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