ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Providing for the ISSUANCE of GENERAL OBLIGATION BONDS, in an Aggregate Amount not to Exceed $20,500,000.00, of the City of Peoria, Peoria County, Illinois, to Provide for the Purpose of Financing Certain Capital Improvements within the City, and Providing for the Levy of a Direct Annual Tax Sufficient to Pay the Principal and Interest on Said Bonds, Authorizing the Sale of Said Bonds to the Purchaser Thereof.
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BACKGROUND: This ordinance authorizes the issuance of $20 million in bonds for capital improvements at the Peoria Civic Center. The authority granted in this Ordinance for the Designated Officials to sell bonds will expire September 14, 2023, without any further authorization or direction from Council, to sell bonds based upon the as prescribed in this Ordinance. This ordinance authorizes a not to exceed amount of $20,500,000 which is slightly higher than the anticipated $20,000,000 issuance. This provides flexibility in case an offering premium is offered as part of the sale.
The current timetable for the issuance has the City having a bond rating review and release of an official statement in mid-April with the market dependent sale in late May. Staff will monitor market conditions with Speer Financial, the City's Financial Advisor, to ensure the timing makes sense for both market conditions and the need for capital.
FINANCIAL IMPACT: The issuance of these bonds will provide the Civic Center with $20,000,000 in capital to improve the facility including the ice plant.
NEIGHBORHOOD CONCERNS: None expressed.
IMPACT IF APPROVED: The Civic Center will be able to do necessary capital improvements to the facility.
IMPACT IF DENIED: The City along with the Civic Center would need to come up with a different funding mechanism to complete the needed capital at the facility.
ALTERNATIVES: None
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