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REQUEST FOR COUNCIL ACTION Date: 10/23/00 Item No.: F -. � DepartmentApprovaL ManagerReviewed Agenda Section Reports and �/� �,`�� Recommendations l Item Description: Full Call of General Obligation Improvement Bonds, Series 21 Background In a timely manner, city staff reviews outstanding debt for either refunding or ca1L The refunding depends on the level of interest rates and whether savings can exceed 3% or better. At current interest rates, refunding becomes either very marginal or not within the statutes of savings. Bond calls depend on how well assessments have been paid on specific bond issues, whether the call date is current and whether sufficient assets are on hand to institute the call. We have reviewed the Series 21 issue and have determined that a full call can be made. The maturities being recommended for call are: Year Interest Amount 2002 4.90% 150,000 2003 5.00% 160,000 2004 5.10% 170,000 2005 5.10% 180,000 2006 5.25% 190,000 2007 5.30% 205,000 2008 5.375% 215,000 2009 5.40% 230,000 2�11�1 5.50% 245,000 This call, which will be effective on March 1, 2001, will provide for significant interest cost savings of $91,491 on an annual basis and will decrease our projected 2001 total outstanding debt by $1,745,000 or approximately $5 1 per capita. Policy Objective The City's Debt Policy provides that refunding or refinancing may be undertaken when the economic advantage is significant to the City (Policy Debt Policies). As outlined within the background and financial implications sections, calling this bond issue will provide a significant economic advantage.