Subject:
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Consider a resolution to issue up $10 million in general obligation bonds to finance various capital projects
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Presented By: City Staff
Recommendation and Review
The city issued a RFP for a not to exceed $10 million tax-exempt bank qualified bond issue to finance the Park View water tank project, a portion of the Reservoir Street improvement project, a portion of the Pleasant Valley Road bridge project and the Fire Station No. 1 renovation project. The required public hearing was held on November 24, 2015.
The resolution provides for the basic terms of the loan to not exceed 20 years and a fixed interest rate to not exceed 2.42%. The terms also give the city the option to pre-pay the loan without penalty at any time during the term of the bonds. The city’s Financial Advisor and city staff reviewed proposals and is recommending that it is in the best interest of the city to award the bond issue to American National Bank and Trust Company. The Finance Committee is further recommending that the city accept the bank’s proposal for 15-year bond issue at a fixed interest rate of 2.32%.