From
Brady Olsen, Treasury and Debt Manager
Title
Discussion and consideration of all matters incident and related to approving and authorizing publication of notice of intention to issue Series 2019A 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) 2019-2020. Combination Tax and Revenue Certificates of Obligation (CO's) totaling approximately $44,000,000 will be issued on August 6, 2019.
The purpose and use of the funds as outlined in the working CIP include fire-fighting facilities and equipment, library facilities, new construction and renovations to municipal facilities, IT upgrades, and street improvements including related costs of rights of way and costs incidental to street improvements. In order to maintain long term flexibility, we anticipate portions of the street and IT projects to be amortized over a 5-7 year time frame.
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 31 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 $48,000,000 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.
Financial Consideration
Prior to the voting on the ordinance for these bonds, Council will be briefed on the recommended CIP plan. Funds to pay the debt service on these CO's will be available and appropriated in the General Obligation Debt Service Fund as needed.
Body
A RESOLUTION OF THE CITY OF GRAND P...
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