15-adoption of an Ordinance authorizing all matters related to the issuance and sale of the City of Paris General Obligation Refunding Bonds, Series 2010

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: O1/22/10 Originating Department: Presented By: Agenda Item No.: Council Date: O1/25/10 Finance Gene Anderson 15. RECOMMENDED MOTION: Move to approve an ordinance authorizing the issuance of $17,075,000 general obligation bonds dated February 2010. POLICY ISSUE(S): Fiscal Management BACKGROUND: This ordinance authorizes the refunding of a portion of the City's outstanding debt. The debt being refunded is a combination of general obligation debt and water and sewer revenue debt. The proposed new issue would only be only a general obligation debt. It is the City's intent, however, to pay for the water and sewer portion of the new debt out of water and sewer revenues and the balance of the debt will be paid for through property taxes. Total savings achieved by the refunding is $1,990,745 (11.58%) while the present value savings amounts to $1,766,037 (10.27%). These savings are $363,928 more than originally anticipated ($331,532 present value savings). The average coupon for the new issue will be 3.17%. Financial advisor Dan Almon with Southwest Securities, Inc. and bond attorney Dan Culver with McCall, Parkhurst & Horton, LLP will be present to discuss the details of this refunding issue. BOARD/COMMISSION RECOMMENDATION: None EXHIBITS: Ordinance ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order D Expense $NA ❑ epartment Report ❑ Resolution ❑ P i Budgeted Amt. $NA resentat on Z Ordinance ❑ Public Hearin ❑ Oth y'I'D Actual $NA g er Acct. Name NA Acct. Number NA FISCAL NOTES: None REVIEWED AND APPROVED BY: Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire ❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 ~ U0U13S