8.9. SR 12-07-2015 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 8.9 Agenda Section Meeting Date Prepared by General BusinessDecember 7, 2015Tim Simon, Finance Director Item Description Reviewed by Redemption of the General Obligation Capital Cal Portner, City Administrator Improvement Plan Bonds, Series 2006C Reviewed by Action Requested Adopt, by motion, a resolution providing for the redemption of certain outstanding General Obligation Capital Improvement Plan Bonds, Series 2006C of the city. Background/Discussion On November 20, 2006, the City Council authorized the issuance of $3,220,000 General Obligation Capital Improvement Plan Bonds for the construction of the Library. The bonds have a final maturity of February 1, 2027, and the true interest cost is 4.0355 percent. Under the terms of the bond sale, notice must be given to the bond holders at least 15 days prior to the redemption in whole or in part. Upon Council approval, staff will provide written notice and prepay the bonds on February 1, 2016. The bonds have a call date of 02/01/2016 and will prepay the bonds maturing in 2017-2027 (principal only). During the past several years during the Capital Improvement Plan (CIP) process we have discussed the opportunity to redeem and prepay these bonds early in 2016. Financial Impact The amount needed to prepay the 2017-2027 bonds will be $2,110,000 (principal) plus any accrued interest. The funding will come from the Government Building Fund which has been the funding source since 2006. The city will save $541,000 in interest expense over the next 10 years plus annual bond administrative fees. Attachments  Resolution providing for the redemption of certain outstanding General Obligation Capital Improvement Plan Bonds, Series 2006C of the city  Sources and Uses summary  Total Redeemed Debt Service schedule