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CST
OF SAN BERNARDlr-., - REQU~ -T FOR COUNCIL ACT" ,)N
From:
Craig A. Graves
Subject: Sewer Revenue Refunding Bond
Issue - $2,600,000
De~: City Treasurer-Water
Date: February 3, 1986
Synopsis of Previous Council action:
March 1983 Mayor and Common Council approved the issuance of
Sewer Refunding Notes.
March 1984 Mayor and common Council approved the extension of
Sewer Refunding Notes for two years.
Recommended motion:
Refer to Ways and Means Committee.
Contact person: ("rrl; r; n GraUA C
Phone: ,,?? 1
Supporting data attached: Yes
Ward: r.it-yWiClp
FUNDING REQUIREMENTS: Amount: S?fiOO.OOO
Source: ~pwpr Fnnn
Finance:
Council Notes:
75-0262
Agenda Item No.Ne.,) Bas; ncSS
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ell
OF SAN BERNARDI" ~ - REQUr 'T FOR COUNCIL AC. ON
STAFF REPORT
Please see the attached memorandum from the Water Department
for detailed background information relating to the Sewer
Revenue Refunding Bond Issue of $2,600,000
This item needs to be considered today so that the Ways and
Means Committee can review the Refunding Bond Issue and
report back to Council at the regularly scheduled meeting of
February 17, 1986 for action by Mayor and Common Council. The
Board of Water Commissioners will hear this matter at their
regularly scheduled meeting of Tuesday February 4, 1986 at
9:30 a.m. for recommendation to the Mayor and Common Council.
Because of previous commitments by Bond Counsel and Underwriter
to finish IDB's in 1985 final details were not available until
last week. This action simply refers the matter to Ways and
Means so that it may be reviewed by Council in an orderly and
timely matter with adequate time before the Refunding deadline.
75-0264
C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
8602-601
TO:
Herbert B. Wessel, General Manager
FROM:
Bernard C.
Finance
Kersey, Director, Administration &
SUBJECT: SEWER REVENUE REFUNDING BOND ISSUE - $2,600,000
DATE:
February 3, 1986
(6609)
COPIES:
-------------------------------------------------------------
In March, 1984, Sewer Revenue Refunding Notes were issued for
two (2) years in the amount of $2,600,000. The notes mature
March 15, 1986. A meeting was called on Friday afternoon,
January 31, 1986 with Craig Graves, City Treasurer, Jeff
Kinsel, Miller & Schroeder, Tim Sabo, bond counsel, and
myself to discuss the issuance of the refunding bonds neces-
sary to payoff the outstanding note.
Sewer Revenue Bonds, Series I, II, and III, were refunded in
March, 1983. Due to the financial condition of the Sewer
Fund and high interest rates in the bond market, refunding
revenue notes were issued in lieu of refunding revenue bonds.
The initial revenue notes, in the amount of $2,600,000, were
issued for a one (1) year term, maturing March, 31, 1984. In
March, 1984, new refunding revenue notes were issued to
refund the initial notes. Again, there was heavy activity in
the bond market, artificially raising interest rates and
there was additional consideration to melding the outstanding
balance on the notes with another issue, to provide matching
funds for the Solids Handling Improvements at the plant.
Since the issuance of the second set of refunding revenue
notes, the bond market and the interest rates are very
favorable to issue the long-term refunding revenue bonds to
refund the $2,600,000 of outstanding notes. There is no
requirement to raise any additional revenue at this time
through the sale of long-term bonds, since the sale of Sewer
Capacity Rights in September, 1984 raised sufficient revenues
for the near term capital improvement projects at Wastewater,
excluding tertiary treatment.
Attached for your information is a schedule for the issuance
of the refunding bonds.
It is recommended that the Board approve the issuance of
$2,600,000 refunding revenue bonds, that the term be for a
INTEROFFICE HEI10RANDUM:
SEWER REVENUE REFUNDING
February 3, 1986
Page 2
8602-601
BOND ISSUE - $2,600,000
period of fifteen years, and that all costs of issuance of
said bonds be paid from the Sewer Fund Operating Account.
Further, it is recommended that the Secretary be authorized
to prepare necessary information to submit to the Mayor and
Common Council to authorize and approve Sewer Refunding
Revenue Bonds in the amount of $2,600,000. .
Respectfully submitted,
~~~c.1 t J:::<1-tM
, Bernard C. Kersey ~
Director, Administration & Finance
BCK:mka
Attachment
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DRAFT
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FOR
TENTATIVE ACTION SCHEDULE
I SSCANCE OF CITY OF SAN BER::,\RD 1;';0
SHiER REFU:';DING BO:\DS
J
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Wednesday, February ff
Notice of Intention to Sell Bonds
published in The Bond Buyer
Notify CDAC
Distribute draft of Preliminary
Official Statement
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Friday, February ~
il"'"
::/ -~~I ,- "." -.(
Notice Inviting
Sun
Bids publ ished in The
Monday, February 10
Bond proofs to Jeffries Banknote
Monday, February 17
.11:00 A.~l.
Regular- meeting
Mayor and Common Council meeting
Adopt:
1. Resolution of Sale
2. Resolution of Issuance
Thursday, March 6
Adjourned Regular Meeting
4:00 P.~l.
11:00 A.M. Bid received
Mayor and Common Council meet
1. Resolution Awarding
approving Final Official
2. Resolution approving
with Fiscal Agent
and adopt:
Bonds,
Statement
Agreement
Thursday, March 6
Final Bond proofs - okay to print given
Tuesday. ~larch 11
Final Official Statement delivered
Fridav. March 14
Closing. Bonds delivered in def ini tive
form
1984 Notes paid