Laserfiche WebLink
<br /> <br /> <br /> <br />CITY COUNCIL COMMUNICATION <br />SUBJECT: DISCUSSION – LIBRARY BOND RETIREMENT OPTIONS <br /> <br />DATE: APRIL 14, 2015 PAGE 3 OF 4 <br /> The Finance Committee did not reach a consensus until 2012, when the Committee <br />instructed staff to implement Option #2 above and to begin the advanced calls on <br />December 1, 2013. <br /> <br />On December 1, 2013, in addition to the normally scheduled principal and interest <br />payments, the City redeemed an additional $520,000 of the 4.25% bonds maturing on <br />December 1, 2023 and $5,000 of the 4.20% bonds maturing on December 1, 2022. On <br />December 1, 2014, the City redeemed an additional $215,000 of the 4.20% bonds <br />maturing on December 1, 2022. <br /> <br />Staff now projects the 2004 General Obligation Library Bonds will be completely paid on <br />December 1, 2018, five years ahead of the original December 1, 2023 maturity date. <br />This projection is based on the current trend in growth of the City’s assessed valuation <br />continuing. <br /> <br />The chart below is from the City’s Long-Term Financial Model. It shows a financial <br />history (2004 through 2014) and a financial projection (2015 through 2018) for the Debt <br />Service Fund. The green line represents the fund’s revenue, made up of property tax <br />revenue and interest earnings. The red line represents the fund’s expenditures, which <br />is principal and interest on the bonds and a small amount of miscellaneous fees. The <br />yellow line represents the fund’s reserves, which is the excess of revenue over <br />expenditures on a cumulative basis. <br /> <br /> <br />Previous Discussions <br />In January 2013 the City Council considered financing/bonding options to advance <br />capital improvements. The Council Communication and associated materials from that <br />4