Council Work Session


Return to the Agenda
AI-7441 Topics of Discussion           
  
Meeting Date: 02/16/2021  
Issuance of Bonds - Refinancing - Rose Music Center - $7,940,000
Submitted By: Jim Bell
Department: Finance Division: Accounting
Council Committee Review?: Council Work Session
Date(s) of Committee Review: 02/16/2021
Audio-Visual Needs: None
Emergency Legislation?: No
Motion/Ordinance/
Resolution No.:

Agenda Item Description or Legislation Title
     *  Issuance of Bonds - Refinancing - Rose Music Center - $7,940,000
Purpose and Background
Three-year notes are coming due on June 1, 2021 and need to be refinanced.  These notes will be refinanced into long-term bonds in the maximum principal amount of $7,940,000 for the purpose of paying the costs of improving the City's municipal recreation facilities by constructing, equipping and furnishing a multi-purpose facility (Rose Music Center).  With the issuance of these bonds, the Rose Music Center will be fully financed in long-term debt issues.

This legislation is to authorize refinancing existing notes in the amount of $7,940,000 to long-term bonds.  The new bonds will have final maturity in 2043 which matches current outstanding bonds for the Rose Music Center.  The maximum interest rate to finance these bonds is estimated to be no more than 2.00%, but likely closer to 1.50%.  The maximum annual debt payment is estimated to be $418,000 and funds are available in the Montgomery County TIF Fund.

City Staff recommend a first reading of the bond ordinance at the February 22, 2021 City Council Meeting with final approval at the March 8, 2021 City Council Meeting.  This legislation is non-emergency legislation, so it becomes effective on April 7, 2021 which allows enough time for the bonds to be priced, sold and closed prior to the maturity of the current notes on June 1, 2021.

Fiscal Impact
Source of Funds: Bonds
Cost: $7,940,000
Recurring Cost? (Yes/No): No
Funds Available in Current Budget? (Yes/No): N/A
Financial Implications:
The three-year notes are coming due on 6/1/21 and need to be refinanced.  These notes will be refinanced into 20 year bonds in the maximum principal amount of $7,940,000 for the purpose of paying the costs of improving the City's municipal recreation facilities by constructing, equipping and furnishing a multi-purpose facility (Rose Music Center).  With the issuance of these bonds, the Rose Music Center will be fully financed in long-term debt issues.

 
Attachments
Bond Purchase Agreement
Bond Registrar Agreement
Fiscal Officer Certificate
Ordinance


    

Level double AA conformance,
                W3C WAI Web Content Accessibility Guidelines 2.0

AgendaQuick ©2005 - 2021 Destiny Software Inc. All Rights Reserved.