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REQUEST ~ORACTION <br />To Item Number <br />City Council 7.3• <br />Agenda Section Meeting Date Prepared by <br />Administration December 17, 2007 Tim Simon, Finance Director <br />Item Description Reviewed by <br />Pre-Sale report for $3,045,000 G.O. Water Revenue Refunding Lori ohnson, Ci Administrator <br />Bonds, Series 2008A Reviewed by <br />Action Requested <br />The City Council is asked to review and approve the Pre-Sale report for $3,045,000 G.O. Water Revenue <br />Refunding Bonds, Series 2008A. <br />Background/Discussion <br />Due to changes in the bond interest rate environment and the City's upgrade in bond rating, it provides <br />an opportunity for the Water Utility to refund Water Revenue Bonds, Series 1998B & 2001A. The <br />average interest rate on Series 1998B & 2001A is 4.75 percent. It is expected that these bonds could be <br />refunded at or below 4 percent. This would provide a future value savings of approximately $120,000 <br />after issuance costs. If interest rates increase prior to the sale and no longer represent a savings of at least <br />3 percent of the refunded principal, the sale may be delayed or cancelled. <br />The utility commission on December 11, 2007, approved a resolution authorizing the City Council to <br />proceed with the current proposed refunding. <br />Next Steas <br />January 22, 2008 -the City Council will issue and award sale of the Bonds. <br />Financial Impact <br />The bonds will be repaid with revenues from the water utility. <br />Attachments <br />• Pre-sale report <br />ActlOn Motion by Second by Vote <br />Follow Up <br />S: \Council\Tim\2008Axefunding. doc <br />