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File #: 45060    Version: 1 Name: A Resolution Authorizing and Providing for the Sale and Issuance of $[40,810,000] Water Utility Revenue Refunding and Improvement Bonds, Series 2016, and All Related Details
Type: Resolution Status: Passed
File created: 11/7/2016 In control: COMMON COUNCIL
On agenda: 12/6/2016 Final action: 12/6/2016
Enactment date: 12/6/2016 Enactment #: RES-16-00876
Title: A Resolution Authorizing and Providing for the Sale and Issuance of $40,810,000 Water Utility Revenue Refunding and Improvement Bonds, Series 2016, and All Related Detail
Sponsors: David Ahrens, Sheri Carter
Attachments: 1. BODY, 2. Bid Tab.pdf, 3. Winning Bid Signed by the Purchaser.pdf

Fiscal Note

This resolution authorizes the issuance of $38.4 million in water utility revenue bonds to be repaid over a twenty-year amortization period.  Proceeds will finance a water main replacement program, new water main construction, reconstruction of a booster pumping system and other capital projects, with $15 million of the proceeds used to refinance prior bond issuances at a lower interest rate. The net present value savings of the refunding is $1.135 million (5.9%).  The true interest rate on the entire issuance is 3.18%. Annual interest rates range from 4% to 5%.  Net interest costs over the twenty year life of the bonds is $12.1 million.  The winning bid includes an issuance premium of $4 million, which can be applied toward establishing a debt service reserve fund for the bonds and to help finance project costs.  Debt service on the bonds will be approximately $1.8 million annually, paid from water utility revenues.  The bonds received a Aa2 rating with a stable outlook from Moody's.

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Title

A Resolution Authorizing and Providing for the Sale and Issuance of $40,810,000 Water Utility Revenue Refunding and Improvement Bonds, Series 2016, and All Related Detail

Body

SEE "BODY" ATTACHED