Title
Agenda Item:
Approval of Designating Ordinance for the Issuance and Sale of General Obligation Bonds Not to Exceed $9 Million
Body
Issue:
Approve issuance of bonds and designate Administrative Services Director as the representative appointed to conduct the sale of bonds in a manner advantageous to the City and to approve the final terms within the parameters established by Council
City Manager’s Recommendation:
Move to approve the ordinance on second reading authorizing the issuance of debt and appointing a "designated representative".
Staff Contact:
Jane Kirkemo, Administrative Services Director, 753.8499
Other Presenter(s):
(Available to answer questions): Nancy Neraas, Bond Counsel, Foster Pepper PLLC
Background and Analysis:
In 2011, the Legislature gave authority to Cities to appoint a “designate representative” to conduct the sale of bonds in the manner and upon the terms deemed most advantageous to the City with parameters set by Council.
In order to get the best borrowing terms, we need to be flexible and respond quickly. However, Council only meets once a week in the evening. The most propitious time to set the terms of the bond sale might turn out to be another time or day. Even the ability to call a special meeting is often not helpful because of the amount of notice that must be given. For example, this Ordinance assumes the City does not receive the State Building for the Arts grant for the Washington Center. However, if the City receives the grant, we can change the dollar amount right up until the day of the sale.
The parameters set by Council:
· Amount - not to exceed $9 million
· $4.2 million for Washington Center
· $1.9 million for taking out the Parks Bond Anticipation Note (BAN)
· $1.9 million for LED Streetlight Conversion
· Date(s): No later than December 31, 2014. I am anticipating a sale date of May 21, 2013. However, this is close to Memorial Day and the market may not be good, so this ordinance provides the flex...
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