Title
Authorization of Storm Water Revenue Bond Anticipation Notes
Action
Action:
A. Adopt the bond order authorizing the issuance of up to $115,000,000 of revenue bond anticipation notes,
B. Adopt a bond resolution for the approval, execution, and delivery in connection with the issuance of up to $115,000,000 of revenue anticipation notes, and
C. Authorize the City Manager and Chief Financial Officer to take necessary actions to complete the financing, including submitting the application to the Local Government Commission.
Body
Staff Resource(s):
Randy Harrington, Management and Financial Services
Mike Davis, Engineering and Property Management
Explanation
* City Council annually adopts the Storm Water Community Investment Plan, and it includes capital projects to be funded with debt proceeds.
* Projects funded include:
* Storm Drainage Improvement Projects, and
* Surface Water Quality Projects (Pollution control and stream restoration).
* The debt issuance is planned in two steps: a short-term construction period draw program which will then be converted to long-term, fixed rate revenue bonds once construction nears completion (up to 36 months).
* This financing approach has been used extensively by the City and reduces interest cost, promotes rate stability, and it provides flexibility in the timing of the spending.
* The construction period financing will be in the form of an $115,000,000 privately-placed drawdown program, allowing the City to reimburse expenses on a monthly basis during construction and eliminating interest expense on funds not yet expended on the project.
* This current action adopts the bond order and bond resolution for the program.
* The North Carolina Local Government Commission is expected to review and approve this financing on March 6, 2018.
* This $115,000,000 will be used on approved projects and can be supported with current revenues.
Fiscal Note
Funding: Storm Water Debt Service Fund
Attachments
Attachment(s)
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