Laserfiche WebLink
ACCEPTING PROPOSAL ON THE SALE OF $1,485,000 GENERAL <br />OBLIGATION CAPITAL IMPROVEMENT CROSSOVER REFUNDING BONDS <br />OF 2004 <br /> BY: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />In 1999, bonds were issued in the amount of $1,665,000 for the construction of a fire <br />station. Lease Revenue Bonds, via the EDA, were issued. As part of the 2003 legislative <br />session, Governmental units are now allowed to issue Capital Improvement Bonds to <br />finance municipal projects such as City Halls, Police and Fire Stations. Capital <br />Improvement Bonds versus a Lease Revenue bond offer a lower rate of interest of <br />approximately .25%. <br /> <br />At the September 13, 2004, City Council meeting, Council authorized the issuance of <br />General Obligation CIP Bonds after the required phblic hearing was held. Per the CIP <br />bonding requirements, the actual bond sale cannot occur until after 30 days of the public <br />hearing to allow for any parties who wish to petition the bonding. <br /> <br />The CIP bond sale occurring tonight would save the City approximately $120,000 in <br />interest costs. <br /> <br />Recommendation: Staff recommends that Council adopt Resolution #04-10-XXX <br />accepting proposal on the sale of $1,485,000 General Obligation Capital Improvement <br />Crossover Refunding Bonds, Series 2004. <br /> <br />Council Action: Motion to authorize the adoption of Resolution #4-10-XXX accepting <br />proposal on the sale of $1,485,000 General Obligation Capital Improvement Crossover <br />Refunding Bonds, Series 2004. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br /> <br />