8.2 GO Bond Issue
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
06/07/04
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
ITEM
NO.
Page 1
FINANCE AND ADMINISTRATION
2 &2a
BY: Rodney Franz
BY~{::
ITEM:
A. Resolution No. 04-6080 Authorizing the Offering for Public Sale of General Obligation Temporary
Notes Series 2004-1, General Obligation Temporary Notes Series 2004-2 and General Obligation
Internal Improvement Bonds, Series 2004-B of the City of Salina, Kansas
B: First reading of Ordinance No. 04-10205, Authorizing the Issuance and Delivery of $4,053,000
Principal Amount of General Obligation Internal Improvement Bonds, Series 2004-B
BACKGROUND:
The City's longstanding practice has been to issue General Obligation Bonds to provide long term
financing for capital improvement projects once per year. Temporary notes to pay construction
period costs on projects are issued as needed.
Resolution 04-6080 authorizes the offering for public sale of both the notes and the bonds, and also
provides for the issuance of the official statement, which is the document that describes and offers
the issue to investors.
Ordinance 04-10205 authorizes the issuance and delivery of the 2004-B bonds. The second reading
of the Ordinance is scheduled for July 12, coinciding with consideration of the bids on the bonds.
Temporary Note 2004-1 is being issued in the amount of $1,000,000 and is scheduled to mature on
July 1, 2007. This note will be used to finance construction period costs related to the North Ohio
Grade separation project. This is the second issuance related to that project, bringing the total of the
notes outstanding for this project to $2,000,000.
Temporary Note 2004-2 is being issued in the amount of $775,000, and will mature on August 1,
2005, at which time it will be rolled into long term bonds. The projects financed by this note include
city costs associated with the North Ninth Bridge construction, the new lakewood Bridge, and
soccer fields to be constructed at Bill Burke Park.
Bond issue 2004-B provides permanent financing for the following projects:
Schilling/Centennial Road
Water Well Road Interchange
Solid Waste Facility Improvements
Liberty Addition Improvements.
The total to be issued is $4,053,000.
FISCAL NOTE:
Temporary Note 2004-1 will be rolled to permanent financing at the close of the Grade Separation
project, along with such other temporary notes that will have been issued for that project. We
anticipate that this will be in 2007.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
06/07/04
TIME
4:00P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
8
FINANCE AND ADMINISTRATION
ITEM
NO.
Page 2
2 &2a
BY: Rodney Franz
BY:
Temporary Note 2004-2 will be rolled to permanent financing with our regularly scheduled bond
issue in August, 2005.
General Obligation Bond Series 2004-B is structured with a mixed maturity, as follows:
Water Well Road 15 Years ($ 615,000)
Liberty Addition 15 Years ( 118,000)
Schilling/Centennial Road 10 Years ( 585,000)
Landfill Improvements 10 Years ( 2,735,000)
General Taxes
Special Assessments
General Taxes
User Fees
RECOMMENDATION:
A. Pass Resolution 04-6080, authorizing the public sale of the notes and the bonds.
B. Pass on First Reading Ordinance 04-10205, Authorizing the issuance and delivery of the 2004-B
Bonds.