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El REQUEST FOR ACTION <br /> River <br /> To ITEM NUMBER <br /> Economic Development Authori 2. <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> General Business February 4, 2013 Tim Simon,Finance Director <br /> ITEM DESCRIPTION REVIEWED By <br /> Resolution authorizing the issuance of General Obligation <br /> Refunding Bonds, Series 2013A REVIEWED BY <br /> ACTION REQUESTED <br /> The Economic Development Authority is asked to adopt a resolution authorizing the issuance of General <br /> Obligation Refunding Bonds, Series 2013A,providing for their issuance and levying a tax for the payment <br /> thereof. <br /> BACKGROUND/DISCUSSION <br /> On December 10, 2012 the Economic Development Authority (EDA) held a public hearing, adopted a <br /> parameters resolution and established a pricing committee to review and either reject or accept the bonds <br /> on the sale date. The pricing committee consisted of the EDA president, EDA executive director, City <br /> Administrator,Mayor, and Finance Director. <br /> On January 15,2013 the pricing committee met and approved awarding the bond sale to Raymond James <br /> &Associates, Inc.,Memphis,TN. A total of 5 bids were received. In addition,Raymond James & <br /> Associates, Inc. paid a premium of over$340,000 so we were able to change the bond size. The true <br /> interest cost is 2.19 percent and the savings will be $795,866 present value and$1,001,112 over the life of <br /> the bonds. The parameters resolution established a minimum of 5% savings and the actual savings is <br /> 7.83%. <br /> In addition, staff held a rating call with Standard and Poor's(S&P) on January 7,2013 and S&P reaffirmed <br /> the credit rating of AA+ for the City. <br /> Mark Ruff of Ehlers and Associates will be at the EDA meeting to present the results of the sale and <br /> credit rating. <br /> FINANCIAL IMPACT <br /> Based on the true interest rate of 2.19% the refunding the bonds will yield a present value savings of over <br /> 7.83% or$795,866. This results in$1,001,112 in savings over the life of the refunding bonds. Also, as <br /> part the of the original lease agreement the YMCA will continue to pay the one-third of the principal and <br /> interest. <br /> r I ■ E A E I B Y <br /> N:\Departments\Community Development\Economic Development\EDA to move\Agenda\Year2013\2-4-2013 Spec ATUREI <br /> Mtg\YMCAbondrefunding.docx <br />