HomeMy WebLinkAbout05-186
DATE SUBMITTED: 8-3-05
BILL #0S::j9 (;;
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
......................... ~-;,. :jC,4 5'................................................... I
SUBJECT: Ordinance authorizing the sale Committee Meeting Date: 8-10-05
and issuance of a 2005 limited tax general COUNCIL MEETING Date: 8-17 -05
obligation refunding bond for the purpose of Department: Financial Services
refinancing a portion of the outstanding 1993 Presenter: Laura Lyon
limited tax general obligation bonds. Phone: 473-5722
SUMMARY: The 1993 limited tax general obligation bond issue provides the option to call (at par)
bonds with a maturity date on or after December 1, 2006. The option to exercise this call becomes
effective on December 1, 2005. This ordinance provides for the issuance of a limited tax general
obligation refunding bond - the proceeds of which will be used to refund, on a current basis, and
defease the 1993 Bonds maturing on or after December 1, 2006 and to pay costs related to the sale
and issuance ofthe refunding bond. This refunding will provide a debt service savings to the City.
Bank of America, N.A. has proposed, by way of the non-binding proposal letter tiat.lla Ld} 0, 2WO~ to
purchase such limited tax general obligation bond upon the terms and conditions set forth in the
authorizing ordinance.
ATTACHMENTS: Ordinance, Discussion Memo, and Proposed Term Sheet from Bank of America
FISCAL IMPACTS (Include Budgeted Amount): The bonds to be refinanced have a par amount of
$1,680,000 have maturities fronu_~/01/06 through 12/01/12. The average coupon rate ofthese bonds
is 5.53% and the average life is l!fJ years. The refunding bonds have the same maturity dates with an
anticipated true interest cost of ~ and average life of tlyears. Net present value of debt service
savings is expected in the amo.Jifbf $ 96,113. which repreients a savings of ~Io of the refunded
bonds. Cftt,('1(, "./1
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
FISCALIBUDGET: ~~~
OPERATIONS: ~ ~
COUNCIL PRESIDENT: f1~/\ __ ;{ A. -d ___
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RECOMMENDED MOTION: 0
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Move to approve Ordinance No. .fQ45 authorizing the sale and issuance of a 2005 limited tax
general obligation refunding bond with a par amount of $J J67t.000 for the purpose of refinancing a
portion of the outstanding 1993 limited tax general obligation bonds.
COUNCIL ACTION: Lrove 0 Deny 0 Table 0 Continue DNoAction