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FC #2 <br /> <br />AUTHORIZING ISSUANCE AND AWARDING THE SALE OF $945,000 <br />GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS OF 2003 <br />BY: Diana Lurid, Finance Officer <br /> <br />Background: <br /> <br />In 1993, bonds were issued in the amount of $2,225,000 for improvement projects within <br />TIF District #1. The amount of principal remaining on this bond after a February 1, <br />2003, bond payment is $925,000. It has been recommended that the City refund this <br />bond, at this time, due to present interest rates being so low. In refunding, new debt is <br />issued to obtain the current rate of interest and replace the old bond issue. The City <br />would save about $33,000 in interest costs. <br /> <br />It should also be noted, that this is the only bond that the City is able to refinance at the <br />current time. The City's remaining outstanding bonds have clauses that state when a <br />refund/Pay off is allowed, and the allowable dates for these issues are in the future. <br /> <br />Recommendation: Staff recommends that Council adopt Resolution #03-01-XXX <br />authorizing the issuance and awarding the sale of $945,000 General Obligation Tax <br />Increment Refunding Bonds of 2003. <br /> <br />Council Action: Motion to authorize the adoption of Resolution #03-01-XXX <br />authorizing the issuance and awarding the sale of $945,000 General Obligation Tax <br />Increment Refunding Bonds of 2003. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br />FC: 01/14/03 <br /> <br /> <br />