8.1 Sell WS Bonds City Of Salina
Request for Commission Action Date Time
7~20~98 4:00 PM
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED
NO. 8 FOR AGENDA:
FINANCE
ITEM NO,
BY: Rodney Franz BY: ~'
ITEM: A Resolution Authorizing the Offering for Sale of General Obligation Combined
Water and Sewage Refunding Bonds of the City of Salina, Kansas.
BACKGROUND: The City has been discussing the potential for refinancing our 1990
and 1994 Revenue bonds for some time, with considerable savings anticipated.
This action is the next step in proceeding with the re-financing.
First, the Resolution authorizes George K. Baum to do a non-binding "pre-offering" of
the bonds. This enables them to find a purchaser for the bonds, and establish the rates
and that will be offered for the bonds. They will return to us on July 27 with the results
of the offering and an updated savings analysis. The City Commission will at that time
review once again the savings analysis, and, authorize the sale of the bonds if the
actual savings justify the proceeding. If the market has changed to such an extent as to
reduce the savings to unacceptable levels, the City has the option of not proceeding
with the sale. The action on July 27 will substantially complete this transaction.
Second, Resolution 98-5305 authorizes and approves the Official Statement, which
provides the description of the Bonds and the City to prospective purchasers.
REQUESTED ACTION:
Pass Resolution Number 98-5305.