CITY COMMISSION AGENDA ITEM

Department:

Finance

Commission Meeting Date:  September 12, 2017

Staff Contact:

Bryan Kidney, Director

Recommendations/Options/Action Requested:

Review bids received and approve sale to the lowest responsible bidder $15,575,000* General Obligation Improvement Bonds, Series 2017-D. Declare an emergency and adopt on first and second reading Ordinance No. 9395 providing for the issuance of general obligation improvement bonds, Series 2017-D. Adopt Resolution No. 7223 prescribing the forms and details of and authorizing and directing the sale and delivery of general obligation improvement bonds, Series 2017-D.

Executive Summary:

The governing body authorized staff to pursue issuance of general obligation bond debt to finance the following:

Obligation Bond, Series 2017-D

Project	Authorized Debt Amount	Proposed Financing*
Community Health Building Stabilization	45,000	$     25,000
Fire-Medical Roof Drainage Maintenance	90,000	90,000
6th St & Champion Lane Benefit District	150,000	75,000
Traffic Calming	400,000	200,000
31st - Haskell to O'Connell – Final Costs	4,600,000	790,000
23rd and Iowa - Final Costs	1,500,000	35,000
Kasold 6th to BBP	1,575,000	1,575,000
23rd to Ousdahl Stormwater	2,455,000	2,455,000
Farmland Street Improvement	8,732,427	8,305,000
Farmland Sanitary Sewer Improvements	798,065	750,000
BBP, Kasold to Wakarusa	600,000	630,000
Yankee Tank Estates Phase 1 Street & SW	632,896	645,000
Estimated Bond Size, Series 2017-D		$15,575,000

*Proposed financing amount includes issuance and financing costs which are within authorized amounts per resolution.

The Series 2017-D bonds will be 20 years with level annual debt service for the Farmland and Yankee Tank benefit districts. All other projects are amortized over 10 years. Special Assessments will be levied against properties that will be paying portions of the benefit districts. The assessments will be included in the November 2018 property tax bills.

Bond and Sale

The bonds will be offered at a competitive sale at 11:00 AM, September 12, 2017. Staff will bring an updated bond ordinance and resolution 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 report is attached.  The City’s Municipal Advisor, Springsted, Incorporated will also be at the September 12th 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.

Strategic Plan Critical Success Factor

Commitment to Core Services

Sound Fiscal Stewardship

Economic Growth and Security

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 are included in the debt service fund beginning with the 2018 operating budget.

Attachments:

Ordinance No. 9395

Resolution No. 7223

Moody’s Rating Report - Added 09/08/17

Reviewed By: (for CMO use only)

☐TM ☐DS ☒CT ☐BM