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CITY COUNCIL AGENDA ITEM BRIEFING SHEET <br />Submittal Date: <br />Originating Depattment: <br />Presented By: <br />Agenda Item No.: <br />11/03/09 <br />Council Date: <br />Finance <br />Gene Anderson <br />19. <br />11 /09/09 <br />RECOMMENDED MOTION: <br />Direct staff to begin the refunding process for current debt issues and the proposed issuance of <br />certificates of obligation. <br />POLICY ISSUE(S): <br />Fiscal management. <br />Dan Almon, the City's financial advisor from Southwest Securities, previously discussed the <br />possibilities and timing of refunding current debt issues for savings. His discussion included the <br />sensitivity of potential savings to interest rate fluctuations. He also discussed the proposed issuance of <br />certificates of obligation for the expansion of Collegiate Drive and the timing of that issue. <br />As noted in the Southwest Securities refunding analysis, there is the potential for savings of <br />approximately $575,015 on the GO issues and $864,907 for the waterworks and sewer system issues. <br />As shown on the accompanying principal and interest payment comparisons, the proposed refunding <br />also does not extend the payment period, i.e. it does not take existing debt and spread its payment out <br />over a longer time. The refunding merely takes advantage of lowering the "R" variable in the basic <br />equation of (Principal x Rate)/Time to lower our payments. <br />The Council needs to give direction to the staff on (1) refunding the current debt issues for savings and <br />(2) the date to proceed on the process to issue new certificates of obligation for the Collegiate Drive <br />Project. <br />BOARD/COMMISSION RECOMMENDATION: <br />NONE <br />EXHIBITS: <br />Description of bonds included in refunding; P& I Payment Comparison - WW & SS Issues; P& I <br />Payment Com arison - GO Issues <br />ACTION: <br />BUDGET INFO: <br />❑ Financial Report ~ Minute Order <br />Expense <br />$NA <br />❑ Department Report ❑ Resolution <br />Budgeted Amt. <br />$NA <br />❑ Presentation ❑ Ordinance <br />y'I'D Actual <br />$NA <br />❑ Public Hearing ❑ Other <br />Acct. Name <br />NA <br />Acct. Number <br />NA <br />FISCAL NOTES: <br />None <br />REVIEWED AND APPROVED BY: <br />Z Administration Z Ciry Cletk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire <br />❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities <br />City of Paris <br />Revised 2/04/08 <br />. '('{-'l8 i <br /> <br />