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REQUEST FOR COi1NCIL ACTION Date: 10/22/O1 Item No.: F-1 Department ApprovaL Manager Reviewed Agenda Section Reports and `�� k�� Recommendations Item Description: Full Call of General Obligation Improvement Bonds, Series 22 Background As part of the City Council's policy to reduce the City's outstanding general obligation debt, City staff periodically reviews outstanding debt for eligibility to implement a call. Bond calls depend on how well assessments ha�e been paid on specific bond issues, whether the call date is current and whether sufficient assets are on hand to institute the call. We ha�e reviewed the Series 22 issue and have determined that a full call can be made. The maturities being recommended for call are: Year Interest Amount 2003 4.65% 130,000 2004 4.75% 135,000 2005 4.85% 145,000 2006 4.95% 150,000 2007 5.05% 160,000 2008 5.15% 165,000 2009 5.25% 175,000 2010 5.35% 185,000 2011 5.45% 190,000 This call, which will be effective on March 1, 2002, will provide for sigiuficant interest cost sa�ings of nearly $60,000 on an annual basis and will decrease our projected 2002 total outstanding debt by $1,435,000 or appro�nately $42 per capita. Overall direct debt per capita will decrease to $5 17 by December 3 1, 2002. Policy Objective The City's Debt Policy provides that debt per capita shall be kept at or below the median for cities of 35,000 (Policy: Debt Poticier). As outlined within the background and financial implications sections, calling this bond issue will provide a significant economic advantage. Financial Implication8 The funds to be used are derived from revenues specifically received from the projects financed by Series 22 and are reserved for payment of debt service only. There will be a positive effect on the City's general operating budget in that future debt service payments will no longer need to be budgeted. Staff Recommendation8 Staff is recommending that the City Council approve the attached resolution, prepared by the City's bond counsel. Council Action Motion to approve the attached resolution providing for the calling of certain maturities of General Obligation Improvement Bonds, Series 22.