Memorandum
City of Lawrence
Finance Department
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TO: |
Dave Corliss, City Manager
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FROM: |
Ed Mullins, Finance Director
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Date: |
August 11, 2011
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RE: |
Resolution 6945 and 6946 and Ordinance 8669- General Obligation Note and Bond Sale |
Background
The City of Lawrence has a note maturing on October 1, 2011 in the amount of $7,465, 000. The projects funded by the note must be refinanced with either a bond or another note. The table below provides a breakdown of the projects by proposed funding source. The Finance Department typically finances a project with a one year note and then refinances the project with a general obligation bond when the project is complete. The projects that are being bonded have been previously approved by the City Commission through the passage of resolutions. The Fairfield and Oregon Trail projects, as well as the 9th and Tennessee and Library expansion projects, that are being refinanced by this note issue, have also been previously approved by the City Commission. The City Commission is requested to approve Resolution No. 6945, authorizing the sale of general obligation notes and bonds on September 13, 2011.
Projects
The table below lists the projects that are proposed to be financed with notes and bonds. The amount financed includes issuance costs. The $4.275 million bond issue will be paid entirely at-large since no benefit district projects are being bonded. The at-large cost of the note issue is $12.0 million, with half of that funding the Library expansion.
Notes
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Project Description |
Amount |
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Fairfield East sanitary sewer (BD) |
411,559 |
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Fairfield East streets (BD) |
1,441,834 |
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Facility Improvements |
1,261,519 |
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Oregon Trail stormwater (BD) |
758,900 |
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23rd St Access west of Naismith |
12,563 |
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Farmland master plan |
150,750 |
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2012 KLINK |
1,005,000 |
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23rd & O’Connell intersection |
854,250 |
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9th & Tennessee |
125,625 |
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23rd Street Bridge |
150,750 |
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Wakarusa Dr – Oread to Research |
1,005,000 |
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Delaware – 8th to 9th |
753,750 |
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Delaware – 19th to 22nd Terrace |
201,000 |
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Incubator expansion |
502,500 |
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Library expansion |
6,030,000 |
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Total |
$14,665,000 |
BD indicates benefit district project
Bonds
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Project Description |
Amount |
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Airport sewer line |
$428,909 |
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6th Street ITS |
254,657 |
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2010 KLINK |
429,386 |
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2011 KLINK |
1,125,125 |
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Iowa Yale-15th design |
434,160 |
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Bob Billings |
723,388 |
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6th Street – Mass. To Folks |
678,375 |
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Downtown Concrete Repair |
201,000 |
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Total |
$4,275,000 |
Action Requested The City Commission is requested to adopt Resolution No. 6945 and Ordinance No. 8669 authorizing the sale of general obligation bonds to finance the projects listed above. The City Commission is requested to declare an emergency and pass Ordinance No. 8669 on first and second reading in order to expedite the sale of the bond and notes. In addition, the City Commission is requested to adopt Resolution No. 6946, authorizing the sale of the notes.