Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: March 7, 2017
SUBJECT
Title
Receive a report, hold a discussion, and give staff direction regarding the upcoming issuance of General Obligation Bonds and Certificates of Obligation.
Body
BACKGROUND
Staff is in the process of establishing the details for this year's scheduled bond sale. Staff will be proposing to issue General Obligation Bonds (GOs) and Certificates of Obligation (COs). In accordance with our practice, staff will propose the issuance of COs instead of Utility System Revenue Bonds for the City's Water, Wastewater and Electric utilities. This method of issuing debt for the City's utility system is expected to yield a 25-30 basis point interest rate savings when compared to the issuance of Utility System Revenue Bonds, and these savings will be transferred from each of the affected Utility Funds to the Street Improvement Fund. Staff has attached a graph (Exhibit 1) reflecting AAA municipal bond yields over the last 20 years as well as a plot of the City's GO/CO issuances over that period.
The GO amount below represents the funding for the fifth and final year of projects approved by the voters in the 2012 Bond Election:
1. Street Reconstructions - $ 4,000,000
2012 Bond Election Total - $ 4,000,000
The GO amount below represents the funding for the third year of projects approved by the voters in the 2014 Bond Election:
1. Street Reconstructions - $ 2,000,000
2. Miscellaneous Traffic Signals - $ 500,000
3. Miscellaneous Sidewalks - $ 700,000
4. Morse Street Expansion (Loop 288 to Mayhill) - $ 1,650,000
5. Miscellaneous Roadways - $ 100,000
Subtotal - Street Improvements (Proposition 1) $ 4,950,000
6. Fire Station #3 Remodel/Rebuild (Land Acquisition/Design) - $ 6,415,000*
7. Communications Center & Criminal Investigations Bureau Relocation - $ 1,795,000
Subtotal - Public Safet...
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