Laserfiche WebLink
$1,000,000/year through fiscal year 2033, but will increase the total debt service by <br />approximately $4,250,000 (present value loss of $125,000) over the life of the bonds. <br />Staff recommends that the city council consider Option 2 because of the need to issue <br />additional debt to complete Phase II of the Wastewater Treatment Plant (WWTP) Project. We <br />believe by restructuring the Bonds there are significant advantages to rate payers, today, that <br />make this option worth pursuing. Under current market conditions we believe that the <br />approximate $1,000,000 reduction in existing debt service can then be applied towards the <br />Phase II WWTP Bonds. If we pursue this option, once the final numbers are known, we will <br />then revisit our upcoming scheduled wastewater rates and look to favorably adjust them. Since <br />we do not have final costs for Phase II, we are hesitant to state today what the exact impact <br />will be to our rate payers, but undoubtedly freeing up approximately $1,000,000 annually will <br />have a positive impact. <br />BUDGET: <br />Please see the above Status of Issue. <br />OPTIONS: <br />Please see the above Status of Issue. <br />RECOMMENDATION: <br />It is our recommendation that the City Council authorizes the issuance of refunding bonds to <br />restructure the existing bonds by adding 10 years to the final maturity. <br />