1975_0519_CC_packet - Laserfiche WebLink

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REQu�sT FoR c�ur�c�� AcT:o� DATE: "-y'' '., AGENDA SECTION: ORIGIIVATING D�P�'./DIV.: DEPT. H�AD APPROVA�•. Reports � Recommendations Adm t ' NO.: ITEM �ESCRIPTION: MGR. REVIEWEp/R£COMAAENDS: Sale of Bonds - Establi.sh Date � - � The City's bond consultant, Mr. Popovich, has recommended that the Council establish 3une 23, 1975, as the date far the sale of bonds to fa.nance, in part, the new City Hall and lacal improvement projects. Bids to be opened at 7:00 P.M. fteco„mendatians have been deferred over the past two months because of *he up;tia.r� 'CI'�I?d in the municapal bond rates. Howevex, withi.n the past week the bond buyers index has been declining, and it may be indicative of at least a short term dawnward trend. 'Fhe graph below illustrates the tax exempt market from July, 1974 thxu Apxil I1, 1975. Tn December the maxket xeac�ed a record high o� 7.26. In February it declined �o b,27 and climbed back to b.97 by Apxil 24. On May ],, the index was at 6.95 and May 8 at 6.8b. Ta,�-��xsm�t �3ands I The proposed offering would be �or permanent 20 year issues for both the City Hall and local improvement projects. ,Mr. Popovich had consadered temporary bonds, which would be refunded after 2 or 3 years by the sale af permanent bonds. �lowever, he has since xejected that alternatzve and is providing for a 10 year callable feature in the permanent issues. If the rates have declined after 10 years, a determination would be made at that time on whether to refinance the outstanding maturities. The C�ty has not sold local impxovement honds since 1972. The City has been financing these projects from the construction fund. However, the City naw has 13 completed projects totaling �1,130,000 which should be permanently financed. As i.ndicated abave, the iast bond sale of the City was in 1972. For this xeason, the City's bond rating has not been upgraded. It is expected that the rating (Moody's) could be assuredly raised from its prese�t BAA-1 �o A, and hapefully to AA. Therefore; a present- ation of data wi11 be made to the New York rating age�cies in an attempt to secure a more favorable rating. A sale date of June 23, would pexmit the City �o receive the proceeds of the sale approxi- mately 30 days later. This will be timel.y as it relates tio the scliedule af estimated contractor payments on the City Hail. Counczl Act ion Requested: 1. Motion adopting a resolution pxovida.ng for pub�ic sale o£ City Hal.l general obligation bonds in the amount of $850,000. 2. Mot�on adopting a xeso�.uti.on providing of general improvement bands, Sera.es 8 $1,�30,Q04. for publ.ic sale in the amount of