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 for the Purpose of Refunding Certain Heretofore Issued and now Outstanding GENERAL OBLIGATION BONDS, SERIES 2005A, of the City of Peoria, Peoria County, Illinois, Authorizing the Execution of an Escrow Agreement and Bond Order and Providing for the Levy and Collection of a Direct Annual Tax for the Payment of the Principal and Interest on said Bonds.
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BACKGROUND:
On occasion, under the recommendation from our financial advisors, Speer Financial, Inc., the City has refinanced outstanding 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 Series 2005A General Obligation Bonds 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 four percent (4%) of the amount of 2005A Bonds refunded. The authority granted in this Ordinance to the Designated Officials to sell refunding Bonds will expire April 1, 2015.
The attached ordinance provides for the issuance of general obligation bonds to be issued in a principal amount not to exceed $13,000,000. An escrow account will be established and proceeds from the refunding issue will be invested in State and Local Government Series (SLGS) securities.
FINANCIAL IMPACT: Future savings from reduced debt service.
NEIGHBORHOOD CONCERNS: None expressed.
IMPACT IF APPROVED: Savings on future debt service as a result of the refunding bonds would be realized.
IMPACT IF DENIED: Refunding would not occur and savings on future debt service payments would not be rea...
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