City Council Minutes 2002 11 06 - Laserfiche WebLink

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Louisville City Council Meeting November 6, 2002 Page 3 ORDINANCE NO. 1402, SERIES 2002 - AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LOUISVILLE, COLORADO GENERAL OBLIGATION REFUNDING BONDS SERIES 2002 - 2nd reading - public hearing (advertised Daily Camera 10/19/02) Davidson called for City Attorney introduction. City Attorney Sam Light read Ordinance No. 1402, Series 2002. Davidson called Staff presentation. Finance Director Charlene Laus reviewed Ordinance No. 1402, Series 2002, which authorizes the issuance of City of Louisville General Obligation Refunding Bonds. The original bonds were issued in 1992 at a face amount of $5,160,000 at 3.7% to 6.7% interest. Davidson recused himself from the discussion and vote on Ordinance No. 1402, Series 2002, stating that he owns some of the bonds, and asked Mayor Pro-Tem Sisk to conduct the meeting. Sisk excused Mayor Davidson from the discussion and vote on Ordinance No. 1402, Series 2002. Davidson left the meeting at 7:15 p.m. Laus explained the bonds were used for refunding the City's 1988 Certificates of Participation, which were issued to construct the City's eighteen-hole municipal golf course. The ordinance is being presented prior to the sale of the bonds and is authorizing the City Manager and the Finance Director to proceed with the sale of the bonds and accept the sale as long as the final terms are within the parameters set forth in the ordinance. She outlined the main parameters as follows: · Principal Amount of Bond $2,215,000 · Maximum Net Effective Interest Rate 4.5% · Final Maturity Date November 1, 2012 Laus stated that if Ordinance No. 1402, Series 2002 is approved, the sale of bonds will take place during the week of November 18th and closing will take place in mid- December. The sale of the bonds will be on-line on the Intemet. The closing will be around December 10, 2002: Laus noted that the City would be required to pay cash at closing for the issuance cost, and the premium on the bonds, which is estimated to be $125 thousand dollars. She stated that Staff is proposing the option of an inter-fund loan from the Fleet Management Fund to the Golf Course Fund, with a repayment schedule. She noted that, the option was discussed with the Finance Committee, and they expressed a desire to repay the fund as soon as possible. She stated that the repayment schedule would have to be restructured.