Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 21-74, Public Hearing, Authorizing the Issuance of Capital Improvement and Refunding Revenue Bonds, Series 2021 not to exceed $55,000,000 for Various Capital Improvements and Refunding the City’s Outstanding Sales Tax Refunding Revenue Bonds, Series 2011 and Pledge Certain Proceeds of the Half-Cent Sales Tax and Revenue Sharing to Secure the Payment of Principal.
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Submitted By: Jeff Snyder, CFO, Financial Management Dept.
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): The City’s rapid growth is requiring investment in a new public works building, a state-of-the-art police training facility, two regional parks, a synchronized traffic light system, and to refund outstanding Sales Tax Refunding Revenue Bonds, Series 2011. Staff is recommending refunding to strengthen our financial position hopefully to improve our bond ratings. The money received from this bond issue will provide funds to acquire, construct, and equip certain capital improvements to improve and maintain the health, safety, and welfare of our citizens.
Presentation Information: A presentation from the CFO on the projects to be funded. Also available will be our Financial Advisor, Jay Glover, PFM, and our Bond Attorney, Steve Miller, Esq., Nabors, Giblin & Nickerson, P.A. to answer any questions City Council may pose.
Staff Recommendation: Move that the Council adopt the ordinance to allow staff to move forward and issue bonds for the Capital Improvements and refunding current bonds.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt the amended ordinance.
2. Move that the Council reject the ordinance and provide direction.
Background: The improvements proposed will benefit future residents of the City. The issuing of these bonds will provide intergenerational equity by allowing the citizens benefiting from these improvements to assist in paying for them.
Issues/Analysis: N/A
Financial Information: Refunding the Capital Improvement Revenue and Refunding Bonds principal of approximately $4 million will result in present value savings of more than $216,000 due to the interest rate change. Also refunding these bonds will allow the City to strengthen our position on our revenue pledge and hopefully increase our bond ratings. Interest rates are very low which positively impacts the cost of borrowing. Couple this with the explosive growth the City is experiencing, and this is a very favorable time to issue debt.
Special Consideration: N/A
Location of Project: Various locations within the City.
Attachments:
1. Ordinance XX-XX
2. PowerPoint Presentation
3. Bond Resolution with Exhibits
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: N/A
Legal Sufficiency Review:
Reviewed/Prepared by Special Bond Counsel. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.