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� � <br /> � <br /> � 4� <br /> FINANCIAL MANAGEMENT MEMORANDUM <br /> #2003-22 <br /> August 25, 2003 <br /> To: Honorable Mayor and City Council Members <br /> From: Steve Ga ity Manager <br /> John W. r, Corporation Counsel <br /> Beth Couter, inance Director <br /> Subject: Refunding Bond Issue <br /> SUMMARY RECOMMENDATION: <br /> Staff recommends adoption of the proposed General Obligation Refunding Bond Ordinance. <br /> BACKGROUND: <br /> City staff inet with representatives of Chapman and Cutler (bond counsel) and Speer Financial, <br /> Inc. to discuss the City's current debt service payments and its future financial and economic <br /> development project requirements. On advice from both firms, it was determined that the best <br /> course of action would be to present the attached ordinance for Council approval now. The City <br /> would only enter into a refunding transaction if it obtains at least $1 million in net present value I <br /> savings from the transaction. Because interest rates in the marketplace can move very quickly, by i <br /> passing the ordinance now it shortens the length of time it would take the City to bring a <br /> refunding bond issue to market. This ordinance has a limited life, as it only stays in effect until <br /> April 15, 2004, at which time it will expire. <br /> POTENTIAL OBJECTION: <br /> City staff is not aware of any opposition to the attached resolution. <br /> INPUT FROM OTHER SOURCES : <br /> Chapman and Cutler and Speer Financial, Inc. <br /> STAFF REFERENCE: <br /> If the Council members have any questions they may contact John Couter at 424-2807, or Beth '� <br /> Couter, 424-2702. <br /> BUDGET IMPLICATIONS: <br /> If a refunding bond is issued, net present value bond savings of at least$1 million dollars. <br />