6.1. SR 12-10-2012 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River To Item Number Mayor and City Council 6.1 Agenda Section Meeting Date Prepared by Work Session December 10, 2012 Tim Simon, Finance Director Item Description Reviewed by Refunding the General Obligation Bonds, Series 2007B Cal Portner, City Administrator Reviewed by Action Requested Review draft ordinance authorizing the issuance of General Obligation Refunding Bonds by the Economic Development Authority. Background/Discussion On December 10, 2012, the Economic Development Authority (FDA) will consider a resolution providing for the sale of General Obligation Refunding Bonds, Series 2013A, for an interest cost savings on the advance refunding of the General Obligation Bonds, Series 2007B. The original proceeds were used for the acquisition and betterment of an existing recreation facility (YMCA project). Per the lease agreement,the city is responsible for two-thirds of the debt service payments and the YMCA the other one-third. Mark Ruff from Ehlers will be at the meeting to review this refinancing and any questions the Council may have regarding the refunding bonds. This ordinance is essentially the same ordinance adopted on the original issuance of the bonds,which delegates the pricing to the EDA. If the Council supports the draft ordinance we will put it on the December 17 consent agenda for formal approval. The EDA is being asked to approve a "parameters"resolution that will allow flexibility of when the bonds can be sold in the competitive market. Currently, Ehlers is looking at pricing the bonds in mid- January and closing after February 1 to be within four years of the call date, as outlined in the city's debt policy. This process worked extremely well when we refinanced bonds in 2010. A Pricing Committee will be established to review and either reject or accept the bonds on the sale date. The pricing committee will consist of the city administrator, finance director,mayor,EDA executive director,and the EDA president. The Pricing Committee is authorized and directed,with the advice of the city's financial advisor,Ehlers & Associates,Inc.,to (a) review proposals for the sale of the Bonds,and (b) award the sale of the Bonds to the prospective purchaser (the"Purchaser'. The Board of Commissioners will meet on the first practicable date after acceptance by the Pricing Committee to ratify such acceptance and take any other appropriate action. P 0 W E 0 E 0 0 r NAWREI