Minutes 03/13/2001 - Laserfiche WebLink

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March 13, 2001 Motion by Mr. Whitehurst, and seconded by Mr. Robinett, to adopt the following ordinance, and was adopted by the following vote: "AN ORDINANCE TO APPROPRIATE $600,000 IN THE CAPITAL IMPROVEMENT FUND FOR NORTH LANDING FERRY DOCK IMPROVEMENTS." Ayes: Benn, Griffin, Moody, Pitts, Robinett, Whitehurst, Holley Nays: None 01 - 87 - Adoption of a resolution to authorize the extension of $38 million in Bond Anticipation notes comprised of the following components: $8 million in General Public Improvement Bond Anticipation Notes (BANs), $20 million of Public Utility Bond Anticipation Notes, and $10 million of Industrial Development Authority Bond Anticipation Notes guaranteed by a general obligation pledge of the City. Recommendation: · Adoption of a resolution to authorize the extension of $38 million in Bond Anticipation Notes (BANs) comprised of the following components: · $8 million in General Public Improvement Bond Anticipation Notes · $20 million of Public Utility Bond Anticipation Notes and · $10 million of Industrial Development Authority Bond Anticipation Notes guaranteed by a general obligation pledge of the City. Purpose and Need: · On March 28, 2000, the City Council approved the issuance of $28 million in BANs; $8 million for General Public Improvement and $20 million for Public Utilities to provide the necessary cash flow for capital projects prior to the issuance of bonds, the permanent financing. · On March 23, 2000 the City and the IDA entered into a Cooperation Agreement reflecting a general obligation guarantee of the City for the bonds to be issued to fund the Performing Arts Center. $10 million in BANs were subsequently issued. · These BANs are scheduled to mature on March 31, 2001. In order to take advantage of declining interest rates, the Chief Financial Officer is recommending a later date for selling the permanent bonds than was anticipated at the time the BANs were issued. It is therefore necessary to extend the maturity date of these bonds and renegotiate the terms and rate with SunTrust Bank, the original issuer of the BANs. · The new BANs will be scheduled to mature on or before September 30, 2001. The BANs will be eligible for early redemption so as to correspond with the issuance of the permanent financing anticipated prior to BAN maturity. Financial Impact: · Amounts are budgeted for the payment of interest. · The interest rate on BANs is typically lower than the expected rate of permanent financing and the issuance of BANs prevents the need to use operating cash for capital projects. · The interest rate on these BANs will be established prior to the extension of the BANs. The interest rate on the $28 million City BANs will not exceed 6%. The interest rate on the $10 million IDA BANs will not exceed 9%.