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CITY COMMISSION AGENDA ITEM |
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Department: |
Finance |
Commission Meeting Date: May 2, 2017 |
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Staff Contact: |
Bryan Kidney, Director |
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Recommendations/Options/Action Requested: |
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1. Review bids received and approve sale to the lowest responsible bidder $3,160,000* General Obligation Improvement Bonds, Series 2017-A. Consider declaring an emergency and adopt on first and second reading Ordinance No. 9350 providing for the issuance of general obligation improvement bonds, Series 2017-A. Consider adopting Resolution No. 7198 prescribing the forms and details of and authorizing and directing the sale and delivery of general obligation improvement bonds, Series 2017-A. 2. Review bids received and approve sale to the lowest responsible bidder $11,375,000* General Obligation Improvement Bonds, Series 2017-B. Consider declaring an emergency and adopt on first and second reading Ordinance No. 9351 providing for the issuance of general obligation improvement bonds, Series 2017-B. Consider adopting Resolution No. 7199 prescribing the forms and details of and authorizing and directing the sale and delivery of general obligation improvement bonds, Series 2017-B. 3. Review bids received and approve sale the lowest responsible bidder $6,000,000* General Obligation Temporary Notes, Series 2017-I. Consider adopting Resolution No. 7200 authorizing and directing the issuance, sale and delivery of general obligation temporary notes, Series 2017-I. 4. Consider adopting Resolution No. 7201 authorizing the Mayor or Vice-Mayor to execute a bond purchase agreement for the sale of General Obligation Improvement Bonds, Series 2017-C. |
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Executive Summary: |
The governing body authorized staff to pursue issuance of general obligation bond debt to finance the following:
Obligation Bond, Series 2017-A
*Proposed financing amount is within authorized amount per resolution which allows certain increases and excludes financing costs.
The Series 2017-A bonds will be 10 years with level annual debt service. Special Assessments have been levied against properties that will be paying portions of the Parking Garage, Mesa Way projects and Corpus Christi project. The assessments will be included in the November 2017 property tax bills.
General Obligation Bond, Series 2017-B (Green Bonds)
*Proposed financing amount is within authorized amount per resolution which allows certain increases and excludes financing costs.
The Series 2017-B bonds will be 22 years with annual debt service matching to estimated utility revenue savings. A transfer from operating departments matching the savings will be transferred annually into the debt service fund for payment.
General Obligation Temporary Note, Series 2017-I
The Series 2017-I temporary notes are three year notes with a one year call provision. When the project is completed the City will issue general obligation bonds to pay off the temporary notes.
General Obligation Bond, Series 2017-C (Neighborly)
*Proposed financing amount is within authorized amount per resolution which allows certain increases and excludes financing costs.
The Series 2017-C (Neighborly) Bonds will be negotiated between the City and Neighborly. Staff will establish benchmark rates for market from the competitive sale on May 2 and use those benchmarks to negotiate the terms of the Series 2017-C bonds with Neighborly. Resolution No. 7201 authorizes the Mayor or Vice-Mayor to execute a bond purchase agreement with Neighborly at the end of the bond retail period of May 4-May 8. The agreement must be within the parameters set in Resolution No. 7201. Final terms for bonds will be included within an Ordinance that will be considered by the governing body at its May 9, 2017 meeting.
Bond and Temporary Note Sale The bonds and note will be offered at a competitive sale at 11:00 AM, May 2, 2017. Staff will bring updated bond ordinances and resolutions to accept the lowest net interest costs bids to the Commission at that evenings Commission meeting.
As part of the bond sale process, the City requested a bond rating from Moody’s Investors service. The bond rating and rationale for the rating will be reviewed by the City’s Municipal Advisor, Springsted, Incorporated at the May 2 Commission meeting.
The sales are not complete until an ordinance is adopted naming the purchaser of the bonds. An ordinance does not go into effect until a second reading. Staff is requesting the Commission declare an emergency and adopt the ordinance on first and second readings on the night of the sale.
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Strategic Plan Critical Success Factor: |
Public Safety and Sustainability |
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Fiscal Impact (Amount/Source): |
All projects to be financed were included in the 2017-2021 Capital Improvement Program. The debt service for the cost of improvements will be included in the debt service fund beginning with the 2018 operating budget. The estimated debt service will be included in the 2018 City Manager’s recommended budget. |
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Attachments: |
Ordinance No. 9350 - Updated 05/02/17 Ordinance No. 9351 - Updated 05/02/17 Resolution No. 7198 - Updated 05/02/17 |
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*Amounts subject to change based on bids received on day of sale.
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☒CT ☐BM |