Title
Approval of Ordinance Authorizing up to $10,000,000 of General Obligation Bonds for Park Acquisition and Authorizing the Issuance of Bond Anticipation Notes (BAN) Pending the Issuance of the Bonds
Recommended Action
Committee Recommendation:
The Finance Committee recommends Council approve the ordinance on second reading.
City Manager Recommendation:
Move to approve the Ordinance Authorizing up to $10,000,000 of General Obligation Bonds for Park Acquisition and Authorizing the Issuance of Bond Anticipation Notes (BAN) Pending the Issuance of the Bonds on second reading.
Report
Issue:
Should the City authorize bond anticipation notes pending the issuance of general obligation bonds for park acquisitions?
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Services Department, 360.753.8465
Presenter(s):
Jane Kirkemo, Director of Administrative Services, 360.753.8499.
Background and Analysis:
Background and analysis has not changed from first to second reading.
In 2006 the City issued bonds funded from a voter-approved utility tax (VUT). The bonds will be fully paid in December 2016. Once the bonds are fully paid the VUT may be used for other park purposes. The final 2016 debt service on the bonds is $1.2 million. The City Council and citizens have expressed the desire to acquire additional park property with the VUT after the bonds are retired. The City has opportunities and options to acquire park land prior to VUT becoming available. The exact amount required to purchase park land in 2016 is not finalized at this time. At a minimum, between $5.3 and $5.5 million is needed to exercise the purchase option on the D.R. Horton and Kaiser Heights properties, including issuance and closing costs.
Staff is recommending a Bond Anticipation Note (BAN) be issued with a maximum maturity of three years in an amount not to exceed $10 million to finance park properties. A BAN is recommended at this time since it is ant...
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