Memorandum
City of Lawrence
Finance Department
|
TO: |
Dave Corliss, City Manager
|
|
FROM: |
Ed Mullins, Finance Director
|
|
Date: |
August 18, 2010
|
|
RE: |
General Obligation Note and Bond Issue
|
Background
The City of Lawrence has a note maturing on October 1, 2010 in the amount of $14,120,000. The projects funded by the note must be refinanced with either a bond or another note. The City Commission previously approved Resolution 6899 authorizing the sale of general obligation notes and bonds on August 3, 2010. The city will be receiving bids on August 24, 2010 for the sale of $9,070,000 in general obligation bonds for capital project, $8,445,000 in general obligation bonds to refinance two state revolving loans for water projects, and $7,465,000 in temporary notes.
Projects
The table below lists the projects that are proposed to be financed with notes and bonds. The table shows the amount of debt to be paid by special benefit districts. However, if the assessments are not paid by the property owners within the district, the debt must be paid by other property owners within the city. The amount financed includes issuance costs.
Notes
|
Project Description |
Amount |
|
Fairfield East sanitary sewer (BD) |
$ 454,511 |
|
Fairfield East streets (BD) |
1,684,662 |
|
Airport sewer line |
1,261,775 |
|
Oregon Trail stormwater (BD) |
745,123 |
|
W. 6th Street widening/ mill & overlay |
904,500 |
|
Iowa – Yale to 15th design |
402,000 |
|
Bob Billings repair |
1,306,789 |
|
2010 KLINK |
452,250 |
|
6th Street ITS |
253,390 |
|
Total |
$7,465,000 |
Bonds
|
Project Description |
Amount |
|
2009 KLINK |
$ 228,386 |
|
Stoneridge Drive South (BD) |
612,481 |
|
Stoneridge Drive North (BD) |
1,339,848 |
|
Overland Drive (BD) |
1,144,118 |
|
Carnegie rehabilitation |
615,447 |
|
Traffic Signals |
152,447 |
|
6th & Congressional traffic signals (BD) |
103,219 |
|
23rd Street access |
16,895 |
|
Fire Truck |
757,900 |
|
Bauer Farm (BD) |
505,308 |
|
Airport water line |
762,950 |
|
George Williams Way N of 6th (BD) |
1,901,841 |
|
George Williams Way N of Overland (BD) |
892,000 |
|
Stoneridge Dr/Kelly turn lane (BD) |
37,160 |
|
Total |
$9,070,000 |
BD - indicates Benefit District financing, with partial or complete assessments on benefitting property.
In addition to the financing provided by the bonds and notes above, the city plans to refinance $8,329,197 in SRF loans payable from water and sewer funds. The loan will be refinanced with an $8,445,000 general obligation bond issue.
Action Requested The City Commission is requested to approve Resolutions 6905 and 6906 and Ordinances 8563 and 8564 authorizing the sale of the general obligation bonds. In addition, the City Commission is requested to declare an emergency and pass the Ordinance on first and second reading in order to expedite the sale of the bonds. The City Commission is also requested to approve Resolution 6904 authorizing the sale of the temporary notes.