|
CITY COMMISSION AGENDA ITEM |
|
|
Department: |
Finance |
Commission Meeting Date: May 9, 2017 |
||
|
Staff Contact: |
Bryan Kidney, Director |
|||
|
Recommendations/Options/Action Requested: |
|
|||
|
1. Review bond purchase agreement with Neighborly signed by the Mayor and approve sale of $654,000 General Obligation Improvement Bonds, Series 2017-C. Consider declaring an emergency and adopt on first and second reading Ordinance No. 9352 providing for the issuance of general obligation improvement bonds, Series 2017-C. Consider adopting Resolution No. 7202 prescribing the forms and details of and authorizing and directing the sale and delivery of general obligation improvement bonds, Series 2017-C. |
|
|||
|
|
|
|||
|
Executive Summary: |
At the May 2, 2017 meeting, staff was authorized by Resolution 7201 to negotiate a bond purchase agreement with Neighborly to finance $654,000 worth of bonds for a fire apparatus. Staff started negotiating rates with Neighborly on May 3. The City’s municipal advisor, Springsted, Incorporated provided staff with a proposed rate structure that used the competitive bonds sold on May 2 as the basis for negotiations. A final rate structure was agreed upon by both parties at 5:17 pm on May 3.
The agreed upon negotiated rates between the City and Neighborly resulted in a true interest cost of 1.91% with a total interest cost of $74,162. The original estimate for the bonds was a true interest cost of 2.20% with a total interest cost of $88,502. The final negotiated interest rate and costs are within the parameters set by Resolution 7201.
Neighborly will open the ordering period on Thursday, May 4 and it will run until May 8 or until all orders are filled. The Mayor or Vice-Mayor will then execute a bond purchase agreement within the Resolution No. 7201 parameters.
|
|||
|
Strategic Goal Area: |
Effective Governance and Professional Administration; Innovative Infrastructure and Asset Management; Commitment to Core Services, Sound Fiscal Stewardship; Collaborative Solutions |
|||
|
Fiscal Impact (Amount/Source): |
Debt service payments for the fire apparatus are included 2018 City Manager’s recommended budget from the Debt Service Fund No. 301 |
|||
|
Attachments: |
Bond Purchase Agreement - Updated 05/09/17 |
|||
|
Reviewed By: (for CMO use only) |
☐TM ☐DS ☒CT ☐BM |