Title
General Obligation Refunding Bonds
Action
Action:
A. Introduce a Bond Order authorizing the issuance of General Obligation Refunding Bonds not to exceed $235,000,000,
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 11, 2023.
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 $235,000,000 of General Obligation Refunding Bonds which includes refunding of the series 2021B General Obligation Bond Anticipation Notes (BANs) to convert short-term financing for transportation and neighborhood improvement projects, and refunding of outstanding 2013B GO Bonds.
§ The refunding of the 2013B GO Bonds is expected to produce economic savings over the life of refunding.
§ 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.
§ 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 11, 2023 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
Attachment(s):
Bond Order
Resolution