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I <br />I FC #2 <br /> <br />I AUTHORIZING ISSUANCE AND AWARDING THE SALE OF $945,000 <br /> GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS OF 2003 <br /> <br />i BY: Diana Lund, Finance Officer <br /> <br />I Background: <br /> <br />I 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 />I 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 />I It should also be noted, ~hat 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 />I 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 />I authorizing the issuance and awarding the sale of $945,000 General Obligation Tax <br /> Increment Refunding Bonds of 2003. <br />I Council Action: Motion to authorize the adoption of Resolution #03-01-~X <br /> authorizing the issuance and awarding the Sale of $945,000 General .O~ligation Tax <br />I Increment Refunding Bonds of 2003. <br /> <br />i ~Reviewed by:' '"~ ~9~\ ~~i'~ ~ <br />1 <br /> <br />I <br /> <br />-329- <br /> <br /> <br />