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Item 5.1.-5.2. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />November I 0, 2003 <br /> <br />SUBJECT: <br /> <br />Consider Resolution for the Issuance and Sale of the City's $ 1,275,000 <br />General Obligation Improvement Bonds, Series 2003A and Consider <br />Resolution Awarding the Sale of the City's General Obligation Water <br />Revenue Bond Series 2003B and Providing for Their Issuance <br /> <br />Bids are being received on Monday, November 10 for the bond issues as stated above. Sid Inman of <br />Ehlers and Associates will be present at Monday night's meeting to present the sale results. As you <br />may recall, the 2002A issue finances the 2003 Street Rehabilitation, 2002 Zane Street, and Boston <br />and Concord improvement projects. The 2003B bonds finance water improvements as well as <br />refunding several water bonds. <br /> <br />The city had a rating conference with Moody's on November 4, and Moody's has affirmed the city's <br />A2 rating stating that the city had good reserve levels and sound plans in place to deal with state <br />budget cuts. The issue of concern was the city's high debt burden. This debt burden includes direct <br />debt, meaning the city's own debt, and overlapping debt, meaning the debt of other taxing <br />jurisdictions such as the county or the school district. In this case, the overlapping debt from the <br />school district was of most concern to Moody's, and, of course, this is something over which the <br />city has no control. In all, Moody's was very pleased with the city's financial condition. An A2 rating <br />is very good for a city of our size. Most cities in the A1 rating are larger cities with tax bases of <br />several billion dollars so it may take a while for the city to meet the criteria of an A1 rating. <br />Attached is additional information from Moody's regarding the rating assigned to the city. <br /> <br />Action Requested <br />The City Council is asked to take action on the results of the bond sales as presented at the meeting <br />by considering the resolutions for issuance and sale of the city's ~1,275,000 General Obligation <br />Improvement Bond Series 2003A and the sale of the city's General Obligation Water Revenue Bond <br />Series 2003B and providing for their issuance. <br /> <br />S:~Council~Lori~2OO3~generalobligationbonds.doc <br /> <br /> <br />