HomeMy WebLinkAboutItem 07 - General Obligation Bond and Certificates of ObligationMEMO TO:
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
ITEM
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER kv
MARCH 7, 2000
GENERAL OBLIGATION BOND AND CERTIFICATES OF
OBLIGATION
City Council to consider approving an ordinance accepting bids as recommended for the
sale of $7,665,000 of General Obligation and Improvement Bonds, Series 2000, authorized
at the December 1998 bond election; and, for the sale of $5,635,000 of Combination Tax
and Revenues Certificates of Obligation, Series 2000 for upgrading the City's public safety
radio communications system, 911 system and for purchasing certain vehicles and
equipment authorized for purchase in the FY 2000 Budget; and, including appropriate cost
of issuance.
BACKGROUND:
At the March 7, 2000 City Council meeting, a representative of First Southwest Company,
the City's financial advisor, will present bids for the sale of $7,665,000 of General
Obligation Bonds and $5,635,000 of Certificates of Obligation. Proceeds are to be used
for projects which were authorized by voters on December 5, 1998 and for acquisition of
equipment which was approved for funding in the FY 2000 Budget. The GO Bonds will
have a 20 -year term and the CO's will vary in term from 4 to 10 years depending upon the
useful life of the items purchased.
Phase II of the December 5, 1998 bond election sale is to fund the following projects:
North Main Street Design Work
Parr Road Construction (Hall Johnson to Parr Lane)
Business 114 Improvements (Design)
Economic Development roadway projects
Library Expansion
Park and Trail Development
Issuance Costs
Total
$ 66,850
2,638,600
777,000
1,000,000
2,875,000
250,000
57,550
$7,665,000
February 25, 2000 (3:23PM)
The CO proceeds are to be used for the following items:
Authorized vehicles and equipment purchase $1,550,600
Radio system improvements (800 MHz and 911 systems) 4,041,669
Issuance Costs 42,731
Total $5,635,000
Total uses required for Bond and Certificate of Obligation proceeds are as follows:
GO Bond project
Certificates of Obligation items
Debt Issuance Costs
$7,607,450
5,592,269
100,281
Total Sale $13,300,000
A copy of the official statement prepared for the sale is included in your packet. The draft
sale ordinances are available in the City Secretary's office.
Staff recommends acceptance of the First Southwest Company recommendations and
approval of the ordinances.
WAG/cjc
Bondsalejmar2000
February 25, 2000 (3:23PM)