HomeMy WebLinkAbout07/15/09 7B
DATE SUBMITTED: July 1,2009
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
78_
........................................................................................
SUBJECT: No~5o~7
Consider ordinance providing for the
issuance and sale of a limited tax general
obligation refunding bond of the City in the
aggregate amount of $5,370,000 to refund
certain outstanding limited tax general
obligation bonds of the City.
Committee Meeting Date: July 2, 2009
COUNCIL MEETING Date: July 15,2009
Department: Finance
Presenter: Andy Parks
Phone: 473.5722
SUMMARY:
The ordinance provides for the issuance of refunding bonds to refinance and restructure the existing
$5.075 million outstanding debts (1999 refunding and 2001 issue) to finance Gold Mountain
improvements. The total existing annual debt service is approximately $620,000 per year, or
approximately 18% of gross revenues. The proposed refunding will extend the term and reduce the
annual payments, will be a taxable issue, and will be purchased by the City as an investment. The
Golf Course Board of Directors approved a motion to approve the refinance with a term of no more
than twenty years and an interest rate not to exceed 4.5%. The proposed structure will allow the Golf
Facility to significantly improve cash flow and purchase replacement equipment without additional
borrowing.
ATTACHMENTS:
Ordinance and financial schedules. The proposed refunding includes interest of3% through 2011,
3.5% 2012 - 2013,4% 2014-2015, and 4.5% thereafter.
FISCAL IMPACTS (Include Budgeted Amount):
If approved, the annual debt service will be reduced from approximately $620,000 to a maximum of
approximately $470,000 per year. Additionally, the City's yield on its investments will improve by
more than $100,000 per year, distributed throughout all City funds with cash balances.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
COMMITTEE CHAIR
COUNCIL PRESIDENT'
RECOMMENDED MOTION:
Bp~()""'HleRd passi1'lg orEliB.8:fI:ee as pn~i'pnted.
7
CONSENT AGENDA 0
GENERAL BUSINESS ~
PUBLIC HEARING 0
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a..S pre.s-~'
COUNCIL ACTION: ~pprove
o Deny
o T~ble
o Continue 0 No Action