5.2.B. SR 01-22-2008 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Ci Council 5.2.B. Agenda Section Meeting Date Prepared by Administration anua 22, 2008 Tim Simon, Finance Director Item Description Reviewed by Consider Resolution Providing For The Issuance And Sale Of Lori ohnson, Ci Administrator $3,045,000 General Obligation Water Revenue Refunding Reviewed by Bonds, Series 2008A and Pledging Net Revenues For The Securi Thereof Action Requested The City Council is asked to approve a resolution providing for the issuance and sale of $3,045,000 General Obligation Water Revenue Refunding Bonds, series 2008A and pledging net revenues for the security thereof. Background/Discussion Due to change in the bond interest rate environment and the City's upgrade in bond rating, it provides an opportunity for the water utility to refund Water Revenue Bonds, Series 1998B & 2001A. The average interest rate on Series 1998B & 2001A average over 4.75 percent. The utility commission on December 11, 2007, approved a resolution authorizing the City Council to proceed with the current proposed refunding. Sid Inman of Ehlers and Associates will be at the Council meeting to present the results of the sale of $3,045,000 General Obligation Water Revenue Refunding Bonds, Series 2008A. Sid will be able to provide the Council with the net savings of the Refunding Bonds. Bids for this bond sale will be received on January 22, 2008. A conference call with Moody's was held on Tuesday, January 15 and it is anticipated that Moody's will maintain the City's General Obligation debt rating of Aa3, which was recently upgraded in October 2007. Financial Impact The bonds will be repaid with revenues from the water utility. Attachments • Resolution Providing For The Issuance And Sale Of $3,045,000 General Obligation Water Revenue Refunding Bonds, Series 2008A And Pledging Net Revenues For The Security Thereof Action Motion by Second by Vote Follow Up S: \ Council\Tim\ 2008Axefunding5.2b. doc