Title
CONFIRMATION OF 2017 DEBT FINANCING
COUNCIL STRATEGIC INITIATIVE ADDRESSED:
Council Initiative: Continue effective financial management
CITY ATTORNEY REVIEW: N/A
SUMMARY STATEMENT:
In addition to refunding the 2007 Limited Tax General Obligation bonds and providing for the issuance of new debt for the Columbia Theatre on behalf the Public Facilities District, the Longview City Council is being asked to confirm the financing needs for the City’s infrastructure and capital equipment needs.
The purpose of the workshop is to establish the amount of financing for certain infrastructure and capital improvement needs for the City. City identified infrastructure and capital equipment needs include the following:
· Street maintenance equipment
· Street/Storm operations building
· Fire aerial apparatus
· 15th Avenue overlay
· Nichols Blvd. improvements
· Oregon Way improvements
· Mobile concrete mixer
· Transit Center Facility local match
On the attached project financing list you will find that I have split the proposed projects and drawn a line at $3,468,500. The purpose for highlighting the $3,468,500 mark is to inform Council of additional savings that are available should Council wish to keep the overall financing below the $10 million threshold. Combining the City’s financing on behalf the Public Facilities District with the City’s recommended project list attached keeps the total financing below $10 million. Keeping the total financing package below $10 million allows the City to proceed with a bank qualified issue. According to Alan Dashen of Northwest Municipal Advisors, bank qualified issues save an entity anywhere from 20 - 30 basis points on average.
RECOMMENDED ACTION:
Authorization to proceed with refunding of 2007 LTGO bond issue and establish the amount of new money necessary to finance the City’s 2017 infrastructure and capital equipment needs.
STAFF CONTACT: Kurt Sacha, Asst. City Manager/Fi...
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