Title
General Obligation Refunding Bonds
Action
Action:
A. Introduce a Bond Order authorizing the issuance of General Obligation Refunding Bonds not to exceed $201,510,000,
B. Adopt a resolution making certain statements of fact concerning the proposed bond issuance and setting public hearing for August 25, 2025, and
C. Authorize City officials to take necessary actions to complete the financing, including making application to Local Government Commission.
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 $201,510,000 of General Obligation Refunding Bonds which includes refunding of the Series 2023C General Obligation Bond Anticipation Note (BANs) draw program 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.
* The city will also seek approval for in a future date for a new short-term General Obligation Bond draw program for up to $200,000,000 for transportation and neighborhood improvements projects authorized by votes in 2020 and 2022 bond referenda.
* 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 regarding these bonds at the following upcoming Business Meetings:
* August 25, 2025:
* Conduct the public hearing on the issuance of General Obligation Refunding Bonds, and
* Adopt a Bond Order approving the issuance of General Obligation Refunding Bo...
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