TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve Charelian, Finance Director
Julie Bondarchuk, Financial Controller
Libby Bretthauer, Financial Services Manager
SUBJECT:Title
Consideration of a Resolution Approving the Issuance of Refunding Certificates of Participation Not-to-Exceed $8.0 Million to Refinance Outstanding Metlox and Water/Wastewater Certificates of Participation and Related Documents (Finance Director Charelian).
ADOPT RESOLUTION NO. 21-0104
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 21-0104 approving the issuance of Refunding Certificates of Participation to Refinance Outstanding Certificates of Participation and approving the execution and delivery of related documents. Resolution No. 21-0104 approves a Site and Facilities Lease, a Lease Agreement, a Trust Agreement, a Certificate Purchase Contract, an Escrow Agreement, an Official Statement, a Continuing Disclosure Certificate; and authorizes the taking of certain actions in connection with the issuance of Refunding Certificates of Participation in an amount not to exceed $8 million.
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FISCAL IMPLICATIONS:
The City's Certificates of Participation (Metlox and Water/Wastewater Refunding) Series 2012 (2012 COPs) are currently outstanding in the principal amount of $7,695,000, of which $6,985,000 is callable starting January 1, 2022. The 2012 COPs are eligible for a tax-exempt refunding 90 days before the call date at the earliest and in the current market, may be refinanced for debt service savings.
A preliminary refunding analysis indicates total budget savings of approximately $680,000 or average annual savings of $68,000. The net present value savings is approximately $639,000 or 8.3% of the refunded 2012 COPs.
BACKGROUND:
On October 18, 2021, the Finance Subcommittee was presented with this refunding opportunity...
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