City Council Minutes 2003 09 16 - Laserfiche WebLink

Home Browse Search

Louisville City Council Meeting September 16, 2003 Page 3 of 11 City's Capital Projects Fund. Based on current rates, it is estimated this refunding issue will save the City over $200,000 over the remaining life of the bonds after payment of all issuances costs. In addition, the refunding bonds include the purchase of a surety bond that will insure that the debt service payments are made in case of default. This surety bond replaces the reserve account that was required in the original bonds. The reserve account of $490,645 is being released back to the City to be used for other capital improvements. The ordinance authorizes 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 in the ordinance. Those parameters are as follows: Principal amount of bonds not exceed $4,025,000, Maximum net effective interest rate - 4.0%, and final maturity date of December 1, 2013. Davidson asked if anyone in the audience wished to speak for or against Ordinance No. 1425, Series 2003. There were no public comments. COUNCIL COMMENT Sisk asked the City's Financial Advisor, James Manire, to explain the public bidding process. James Manire, James Capital Advisors, explained the bidding process would be by competitive sale, in which qualified underwriters will be able to submit a binding bid to be the company underwriter of the bonds. The bids will be accepted through an Internet platform, known as the parity system. He explained the state-of-the-art electronic data process has become the mainstay of the competitive bid bond market. He stated the underwriter has not been selected yet. The underwriter that will offer the City the very best underwriting will be selected. Sisk asked how the bidders are qualified. Manire stated through the National Directory of Securities and Underwriters. Davidson pointed out the City has a high rating in its ability to purchase bonds. Laus stated the City's underlying rating for this issuance of bonds is an A rating, and with the insurance it will be AAA. Laus noted there is a $20,000 premium for the surety bond. Davidson called for public comment and hearing none, closed the public hearing. MOTION: Brown moved for Council approval of Ordinance No. 1426, Series 2003, seconded by Keany. Roll call vote was taken. The motion passed by a vote of 7-0. RESOLUTION NO. 27, SERIES 2003 - A RESOLUTION APPROVING THE CONCEPT PLAN FOR IMPROVEMENTS AT THE MCCASLIN/U.S. 36 INTERCHANGE Davidson called for Staff presentation. Assistant City Manager for Governmental Affairs Heather Balser reviewed the