ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Providing for the ISSUANCE of One or More Series of GENERAL OBLIGATION REFUNDING BONDS, SERIES 2015, in an Aggregate Amount Not to Exceed $28,500,000.00, to Refund Certain Outstanding Bonds of the City, Providing for the Levy of a Direct Annual Tax Sufficient to Pay the Principal of and Interest on Said Bonds, and Authorizing the Sale of Said Bonds to the Purchasers Thereof.
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BACKGROUND: On occasion, under the recommendation from our financial advisors, Speer Financial, Inc., the City has refinanced bond issues that would result in significant savings in debt service. Speer Financial, Inc. has determined that significant savings in debt service will be realized as a result of refinancing the General Obligation Refunding Bonds, Series 2005 B and the General Obligation Bonds, Series 2007 A. The General Obligation Refunding Bonds, Series 2005 B will be refunded on a negotiated basis with Robert W. Baird and the General Obligation Bonds, Series 2007 A, will be refunded on a negotiated basis with Mesirow Financial, Inc. This ordinance authorizes the Designated Officials (Mayor, City Clerk, City Treasurer, City Manager and Finance Director/Comptroller) to sell refunding bonds upon achieving savings in excess of five percent (5%) of the amount of the 2005 B Bonds and 2007 A Bonds refunded respectively.
The authority granted in this Ordinance for the Designated Officials to sell refunding bonds will expire April 7, 2015 (if changes in Council membership occur) or August 24, 2015 (if no changes in Council membership occur) without any further authorization or direction from Council, to sell bonds based upon the terms as prescribed in this Ordinance.
The attached ordinance provides for the issuance of general obligation bonds to be issued in a principal amount not to exceed $28,500,000. An escrow account will be established and proceeds from the refunding issues will be invested in State and Local Government Series (SLGS) securities.
FINANCIAL IMPACT: Future savings from reduction in debt service requirements.
NEIGHBORHOOD CONCERNS: None expressed.
IMPACT IF APPROVED: Savings on future debt service as a result of refunding bonds will be realized.
IMPACT IF DENIED: Refunding would not occur and savings on future debt service payments would not be realized.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Keep taxes and fees competitive.
DEPARTMENT: Finance