Title
Consider/Discuss/Act on a Resolution Authorizing the Initiation of Debt Issuance Not to Exceed $35,000,000 for New Capital Improvement Programs (CIP).
Summary
MEETING DATE: May 6, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Resolution
ITEM SUMMARY:
· The City desires authorization to initiate the issuance of debt, not to exceed $35,000,000, for capital projects related to Gateway, airport, downtown parking, aquatic center, ERP, municipal center design, and for professional services rendered in relation to such projects and the financing thereof.
· Projects will be funded with a combination of previously approved voter authorization and Certificates of Obligation
BACKGROUND INFORMATION:
· Continuing growth drives the need for major capital improvements.
· The capital improvement program (CIP) is developed by identifying and prioritizing capital project needs, and evaluating financing capacity for project funding.
· Funding for capital improvement projects are mainly from issuance of bonds.
· In February 2006, the voters approved a bond election of $91.6 million. In May 2010, the voters approved a bond election of $51.35 million. The total authorized but not issued debt as of October 1, 2013 is $81.5 million. $30.15 million remains unissued debt from 2006 approval and $51.35 million from 2010 approval.
SPECIAL CONSIDERATIONS:
· Applications will be made to both Standard and Poor's (S&P) and Moody's Investors Services, Inc. (Moody's) to review of the bond rating.
· Currently, all outstanding tax supported debt of the City is rated "Aa1" by Moody's Investors Services, Inc. (Moody's) and "AAA" by Standard and Poor's, a Division of The McGraw-Hill Companies, Inc. (S&P).
FINANCIAL SUMMARY:
· All bond issuance costs will be paid from the bond proceeds.