Title
General Obligation Refunding Bonds
Action
Action:
A. Introduce a Bond Order authorizing the issuance of General Obligation Refunding Bonds not to exceed $150,000,000,
B. Adopt a resolution making certain statements of fact concerning the proposed bond issuance, and
C. Set a public hearing regarding these bonds for September 27, 2021.
Body
Staff Resource(s):
Teresa Smith, Finance
Matt Hastedt, Finance
Explanation
§ This request for Council action begins the process of authorizing the issuance of up to $150,000,000 of General Obligation Refunding Bonds which includes refunding of the series 2019C General Obligation Bond Anticipation Notes (BANs) to convert short-term financing for transportation and neighborhood improvement projects.
• This action authorizes the City Manager and the authorized officers named in the resolution to take the necessary actions to complete the financing, including applying to the Local Government Commission (LGC).
• The City issues BANs, which are short-term, variable rate debt, during construction periods for transportation and neighborhood improvement projects with a plan to convert the BANs to permanent debt at the end of a 24 to 36-month construction period. This approach is consistent with financial best practices and results in a lower cost to taxpayers.
§ Council will be asked to take further actions at the Business Meeting on September 27, 2021 to:
- Conduct the public hearing on the issuance of General Obligation Refunding Bonds, and
- Adopt a Bond Order approving the issuance of General Obligation Refunding Bonds.
Fiscal Note
Funding: Municipal Debt Service Fund
Attachments
Attachment(s)
Bond Order
Resolution