Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Boecker, Assistant City Manager Ed Mullins, Director of Finance
Date:	May 20, 2009
RE:	Reconsider Financing Resolution for Revenue Bonds to Finance 2009 Utility CIP Projects

At its meeting on May 5, 2009, the City Commission considered and passed, on a 3-2 vote, a resolution authorizing financing for 2009 revenue bond projects for various utility improvements. Upon review by bond counsel, it was determined that a two-thirds majority vote is required by state law for revenue bond issuances.  Therefore, four affirmative votes are necessary in order to authorize the financing resolution.  Bond counsel has submitted a memo that explains this situation and staff apologizes for the confusion regarding this matter. 

Based on the information from bond counsel, staff suggests that the City Commission rescind Resolution No. 6835, which was the financing resolution authorized at the May 5, 2009 meeting.  Additionally, staff would suggest that the City Commission reconsider a new financing resolution to determine if a minimum of four City Commissioners would authorize the resolution to proceed with financing the projects. 

As a reminder, the resolution authorizes up $11,000,000 in revenue bonds for the purpose of financing four (4) CIP debt financed projects.  The resolution authorizes $11,000,000 in Revenue Bonds. This includes $9,350,000 for construction plus related bonds reserves and financing costs.

Staff recommends approval of Resolution No. 6839 authorizing the Revenue Bond issuance, and rescinding Resolution No. 6835.