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AUTHORIZING ISSUANCE AND AWARDING THE SALE OF $1,285,000 <br />GENERAL OBLIGATION TAX INCREMENTCROSSOVER REFUNDING <br />BOND, SERIES 2003 <br /> BY: Diana Lurid, Finance Officer <br /> <br />Background: <br /> <br />In 1995, bonds were issued in the amount of $2,600,000 for improvement projects within <br />TIF District #2. The amount of principal remaining on this bond is $1,285,000. It has <br />been recommended that t he City refund this bond, at this time, due to present interest <br />rates being so low. In refunding, new debt is issued to obtain the current rate of interest <br />and replace the old bond issue. The City would save about $70,000 in interest costs. <br /> <br />It should also be noted that this is the second bond that the City has been able to refinance <br />this year and take advantage of lower interest rates. The City's remaining outstanding <br />bonds have clauses that state when a refund/pay off is allowed, and the allowable dates <br />for these issues are in the future. <br /> <br />Recommendation: Staff recommends that Council adopt Resolution #03-06-XXX <br />authorizing the issuance and awarding the sale of $1,285,000 General Obligation Tax <br />Increment Crossover Refunding Bonds, Series 2003. <br /> <br />Council Action: Motion to authorize the adoption of Resolution #03-06-XXX <br />authorizing the issuance and awarding the sale of $1,285,000 General Obligation Tax <br />Increment Crossover Refunding Bonds, Series 2003. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br />-89- <br /> <br /> <br />