Title
General Obligation Refunding Bonds
Action
Action:
A. Introduce a bond order authorizing the issuance of General Obligation Refunding Bonds not to exceed $223,000,000,
B. Adopt a resolution making certain statements of fact concerning the proposed bond issuance, and
C. Set a public hearing regarding these bonds for June 24, 2019.
Body
Staff Resource(s):
Kelly Flannery, Finance
Robert Campbell, Finance
Explanation
§ This request for Council action begins the process of authorizing the issuance of up to $223,000,000 of General Obligation Refunding Bonds which includes:
- Refunding approximately $73,000,000 of outstanding General Obligation Bonds, and
- Refunding up to $150,000,000 in General Obligation Bond Anticipation Notes (BANs) to convert short-term financing to permanent financing for transportation and neighborhood improvement projects.
§ 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 June 24 to:
- Hold the public hearing on the issuance of General Obligation Refunding Bonds, and
- Complete the process of authorizing the bond issuance.
Fiscal Note
Funding: Municipal Debt Service Fund
Attachments
Attachment(s)
Bond Order
Resolution