ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Providing for the ISSUANCE of VARIABLE RATE GENERAL OBLIGATION DEMAND BONDS, SERIES 2016A, of the City of Peoria, Peoria County, Illinois, Authorizing the Execution of One or More Bond Orders, Providing for the Levy and Collection of a Direct Annual Tax for the Payment of the Principal of and Interest on Said Bonds, and Authorizing the Sale of Said Bonds to the Purchaser Thereof.
Body
BACKGROUND: The Variable Rate General Obligation Demand Bonds, Series 2016A is multi-faceted. Approximately $4.5 million of the bond will be used to call the Taxable Variable Rate General Obligation Capital Improvement Bonds, Series 2012C.By calling the 2012C bonds and reissuing them as tax exempt variable rate bonds the City will reduce its future debt service cost relating to these funds.
The remaining portion of the bonds will be issued for capital projects for sidewalk improvements, streetscape, bridge improvements and other capital infrastructure cost, as well as, sewer repairs and drainage improvements in a total amount not to exceed $6 million.
In accordance with ordinance, the maximum par amount of the Bonds to be issued shall not exceed $10,000,000.
This ordinance authorizes the Designated Officials (Mayor, City Clerk, City Treasurer, City Manager and Finance Director/Comptroller) to sell bonds without any further authorization or direction from the City Council. The authority granted in this Ordinance for the designated officials to sell bonds will expire August 23, 2016 without any further authorization or direction from Council, to sell bonds based upon term as prescribed in this Ordinance.
FINANCIAL IMPACT: Increase in annual future debt service.
NEIGHBORHOOD CONCERNS: None expressed.
IMPACT IF APPROVED: Implementation of a cost-effective method of funding public infrastructure improvements.
IMPACT IF DENIED: Failure to utilize an affordable and cost-effective method of funding public infrastructure improvements. Projects would be delayed as funding would not be available.
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
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Invest in our infrastructure and transportation.
DEPARTMENT: Finance