Description: AGENDAHED.JPG

 

Item No:                    5K.

 

Meeting Date:           December 10, 2012

 

From:                          William Spinelli, Finance Director, CPA

 

Subject:                      Resolution designating the Finance Team to work with the City in Connection with the Issuance by the City of the not to exceed $16 million Capital Improvement Revenue Refunding Bonds, Series 2013 to refund all or a portion of the City’s outstanding Capital Improvement Revenue Bonds, Series 2004.

 

 


Staff Recommendation:

 

Staff recommends the City Commission approve Management to move forward with designating the Finance Team to work with the City in connection with the issuance by the City of the not to exceed $16 million Capital Improvement Revenue Refunding Bonds, Series 2013; to refund all or a portion of the City’s outstanding Capital Improvement Revenue Bonds, Series 2004, authorizing the City Manager to execute the engagement letters; authorizing the City Manager to retain other professional firms as needed.

 

Analysis:

 

Interest rates are very low in this current market, particularly on the short end of the yield curve.  Refunding the 2004 Capital Improvement Revenue Bonds will allow us to take advantage of these rates that are lower than what is currently stated on the existing bonds.  Per the City’s existing Debt Management Policies and general GFOA national standards, the parameter that is of primary interest to the City is achieving net present savings of at least 3% of the par value of the refunded bonds.  If this level of savings cannot be achieved then the sale of the Capital Improvement Revenue Refunding Bonds will not proceed.  Current estimated PV% savings are in excess of the minimum 3% threshold for all three Revenue Refunding Bonds. 

 

Options:

1.  Approve the resolution designating the Finance Team; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

 

Subject to the market, the 2013 Capital Improvement Refunding Revenue Bonds are estimated to produce an average annual savings of $60,000-$80,000 per year in the General Fund. 

 

 

 

Submission Date and Time:    12/6/2012 8:31 AM____

 

Department: ______________________

Prepared by:  ______________________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                 

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________