AGENDA BILL 08-11-06
Resolution No. 08-45 – Request to Authorize Bond Sale
November 24, 2008
*Memorandum from Finance Director to City Manager
*Resolution No. 08-45
Bond issuance: $4 million (Included in adopted FY09 budget)
Bond refunding: $157,000 in future interest savings (Not included in adopted FY09 budget)
Policy Questions for Council Consideration:
Consistent with the adopted fiscal year 2009 budget, should the City of West Linn authorize the issuance of $4 million in bonds to finance various municipal projects?
Requests a Council motion to adopt Resolution No. 08-45, to authorize the issuance of $4 million in bonds, and refunding of two existing bonds.
A bond sale was identified in the adopted fiscal year 2009 budget in the amounts of:
**$2 million for street maintenance projects
**$1.5 million for police station site acquisition and architecture
**$500,000 for Hammerle & Willamette Park wading pool and restroom projects
In February 2008, Council approved a resolution to refund four existing bond issues; refunding was not completed due to adverse bond market conditions. Recent projections indicate that it would be advantageous to refund two of these four bond issues.
The interest savings to refund these bond issues would be approximately $157,000 in future interest costs.
If we proceed with the $4 million bond sale, the 1998 and 1999 bond issues should also be included in the bond sale saving approximately $157,000 in interest.
Staff recommends adopting Resolution No. 08-45 to authorize the sale of $4 million in bonds.