Share to Facebook Share to Twitter Bookmark and Share
File #: 19-0454    Version:
Type: ordinance Status: Passed
File created: 5/7/2019 In control: City Council
Agenda date: 5/21/2019 Final action: 5/21/2019
Title: Approval of an Ordinance to Refinance a Bond Anticipation Note (BAN) for $10,000,000 and Add Additional Funding for Parks Land Acquisition in the amount of $4,000,000
Attachments: 1. Ordinance, 2. BAN Preliminary Offer
Title
Approval of an Ordinance to Refinance a Bond Anticipation Note (BAN) for $10,000,000 and Add Additional Funding for Parks Land Acquisition in the amount of $4,000,000

Recommended Action
Committee Recommendation:
Not referred to a committee.

City Manager Recommendation:
Move to approve the Ordinance to refinance the Bond Anticipation Note for $10,000,000 and add additional funding for Parks Land Acquisition in the amount of $4,000,000 on second reading.

Report
Issue:
Whether the City Council should approve the Ordinance to refinance the Bond Anticipation Note and add additional funding for Parks Land Acquisition.

Staff Contact:
Nanci Lien, Fiscal Services Director, Administrative Services Department, 360.753.8465

Presenter(s):
None - Consent Calendar Item.

Background and Analysis:
Background and analysis has not changed from first to second reading.

In 2018, the City of Olympia obtained a BAN (bond anticipation note) with Cashmere Valley Bank for $10 million for the purchase of several park properties. The BAN matures on June 1, 2019. The City has $4 million of financial obligations for property acquisition due later this year. The City had originally planned to refinance the BAN before it matured in June 2019, and include the additional $4 million financial obligation.
In consultation with the City's financial consultant, staff recommends refinancing the original $10 million BAN for one year with Cashmere Valley Bank and add the additional $4 million obligation, for a total of $14 million. As part of the decision to refinance the bank loan, the financial consultant checked rates with Cashmere Valley Bank and two other banks. The rate of the bank loan was comparable or less than current General Obligation bond rates and the issuance is less costly and allows the City to pay it off early with no penalty.
Prior to the 2020 maturity, staff will reassess the market and bring forward a recommendation for long-term refinancing of the $14 million loan....

Click here for full text