2008-99 PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS

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_y � 'c� FINANCIAL MANAGEMENT DEPARTMENT #2008 - 111 December 10, 2008 MEMO TO: Honorable Mayor Michael T. Carrig�d City Council Members n� � FROM: Ryan P. McCrady, City Manager �� Greg Crowe, Assistant City Manager EU�� Ron Neufeld, Director of Financial Management � SUB JECT: Ordinance providing for the issuance of General Obligation Bonds to pay the co�ts of TIF Refunding and Water Fund Capital Improvement Projects SUMMARY RECOMMENDATION: Staff recommends approval of the attached ordinance � providing for the issuance of General Obligation Bonds not to exceed $10,000,000 to pay for the costs related to the refunding of two Olde Towne TIF Letters of Credit and provide funding for water capital projects. BACKGROUND: In 2006 the City Council approved a $2.6 million General Obligation Note (Olde Towne Redevelopment Project) to pay the costs of the West Main Streetscape Rehabilitation Project, and in 2008 approved a $1.5 million General Obligation Note (Olde Towne Redevelopment Project) to pay the costs of the West Main and North Water Streetscape Projects. It was the intention that these projects would later be refunded by a General Obligation Bond that would then be retired over the life of the Olde Towne TIF. $4.3 million of this bond issue will be used to refund those two notes, provide money for funds not yet drawn against those notes and funds for the 300 North Water courtyard. In addition to the TIF portion of this bond issue there is also $5.7 million to provide funding for four Water Capital projects. The four projects that have been identified are: Dam Repairs $ 1,150,000 Lake Toco Pump & Pipe Infrastructure 2,500,000 Water Main Replacement 800,000 Water System Improvements—Phase II 1,250,000 Total 7 0 000 It is estimated that the interest rate for the bond issue will be about 4.4%. � , � '