Department: Resource Management
Staff Contact: Dianna Wright/Amy Tharnish
Subject: Consideration of Resolution No. 19-1042 authorizing the public sale of General Obligation Temporary Notes, Series 2019-A; and General Obligation Improvement and Refunding Bonds, Series 232.
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Item Description:
title
Consideration of Resolution No. 19-1042 authorizing the public sale of General Obligation Temporary Notes, Series 2019-A; and General Obligation Improvement and Refunding Bonds, Series 232.
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Summary:
The City’s bond counsel, Gilmore & Bell, has prepared Resolution No. 19-1042 which authorizes the City to sell the following general obligation issues:
• General obligation bonds, Series 232
Series 232 will be used to fund 11 projects in the approximate amount of $12,658,209. Some of the projects with the largest funding amounts are 143rd Street, Pflumm to Quivira; College Blvd, Lone Elm to Woodland; Street Reconstruction Program; and the Street Preservation Program. Series 232 includes 10-year debt structured for level annual debt service.
Series 232 will also be used to refund a portion of the City’s outstanding Series 215 and Series 219 general obligation bonds, in the approximate amount of $9,650,000 and $2,190,000, respectively. Series 215 has a final maturity of December 2030. Series 219 has a final maturity of December 2023. While the actual savings as a result of this refunding will depend upon market conditions on the sale date, the present value of debt service savings is currently anticipated to be approximately $1,128,594 (2.252%) and $40,990 (2.235%), respectively. The refunding will not extend the life of the bonds and is structured for level annual savings.
• Temporary notes, Series 2019-A, will be used to provide project funding, including redeeming a portion of the Series 2018-A Notes, in the approximate amount of $54,708,253. Temporary note Series 2018-A provides funding for 23 capital improvement projects and has a maturity of August 1, 2020. The projects with the largest funding amount are K-7 Highway Santa Fe to Old 56 Highway, Santa Fe & Ridgeview Geometric Improvements, Woodland Road K-10 to College Blvd, Lone Elm Road Old 56 Highway to 151st Street, and Park Maintenance Facilities.
The City has applied to Standard & Poor’s Corporation and Fitch for ratings on the bonds and notes.
The sale of the bond and notes is set for June 18, 2019. A tabulation of bids and recommendation of awards will be presented at the City Council meeting of the same date.
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Financial Impact:
The balance of outstanding general obligation bonds after this issue will be approximately $198,275,000 plus costs of issuing the Series 232. Series 2018-A Notes in the amount of $26,735,000 will mature on August 1, 2019. The balance of outstanding temporary notes will be approximately $54,910,000.
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Action Needed:
Approval of Resolution No. 19-1042 to authorize the sale of general obligation bonds, Series 232, for funding various capital improvements and refunding; and authorize the sale of general obligation temporary notes, Series 2019-A for funding various capital improvements and redeeming a portion of the Series 2018-A Notes.
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Attachment(s):
A: Resolution No. 19-1042
B: Summary Term Sheet