HomeMy WebLinkAbout07/06/2011 5J AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL 51
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SUBJECT: Parking Bond Ordinance Study Session Date June 22, 2011
COUNCIL MEETING Date July 6, 2011
Department Finance
Presenter Becky Hasart
Phone 360- 473 -5722
SUMMARY: The City of Bremerton currently has a letter of credit outstanding with Bank of America
for its Parking Bonds (current principal of $9,675,000) This letter expires August 10, 2011 We have
completed negotiations with Bank of America for a two year note to replace the letter of credit
It is staff's recommendation that we refund with Bank of America with this two year note The interest
rates associated with this note are more favorable than converting this issue to a fixed rate bond
structure Also, the two year horizon will allow us to better assess the revenue impacts that may be
realized with the change in our parking enforcement operator and with the completion of the Park
Plaza parking garage Now that the final terms are established, we will need to adopt an ordinance
to finalize this transaction
Our bond counsel, Foster Pepper, has provided the ordinance for council consideration
ATTACHMENTS: Ordinance No _b uthonzing the issuance and sale of $9,675,000 to provide
funds to refund the City's parking revenue bonds with Bank of America, N A
FISCAL IMPACTS (Include Budgeted Amount) Minimal We currently have debt service obligation
associated with this bond This transaction will change the vehicle by which we manage this
obligation Principal and interest payments are paid by the parking revenues realized in Fund 105
APPROVALS:
DEPARTMENT DIRECTOR
CITY ATTORNEY
FINANCE DIRECTOR
RECOMMENDED MOTION:
Move to approve Ordinance No _5j5aof the City of Bremerton, Washington, authorizing the
issuance and sale of a limited tax general obligation note in the principal amount of $9,675,000 of the
City to provide funds to refund the City's Weekly Rate Demand Revenue Bonds, 2003 (Kitsap
Regional Conference Center Parking Garage), fixing the terms and covenants of the note, and
approving the sale of the note to Bank of America, N A
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STUDY SESSION ACTION: Co ent Agenda ❑ General Business ❑ Public Hearing
COUNCIL PRESIDENT i'
COUNCIL ACTION: [iApprove ❑ Deny ❑ able ❑ Continue ❑ No Action
Form Updated 4/18/2011