Title
Financing for Construction (B)
This item is related to financing for costs of acquisition and construction.
Explanation
In July 2009, the City Commission (1) authorized, among other things, (a) the financing of up to $180 million of new money for payment of Costs of Acquisition and Construction (capital projects) through the issuance of fixed-rate bonds; and (b) conversion of approximately $14 million of the taxable Utilities System Commercial Paper Notes, Series D to a fixed rate through the issuance of fixed-rate bonds; and (2) approved the selection of J.P. Morgan as Senior Manager for the bonds and authorized the appointment of additional Co-Managers if doing so would enhance the distribution of the bonds.
The issuance of the 2009 Series A, B and C Bonds for the purposes referred to above is scheduled to occur in late September. We recommend that the City Commission adopt the attached Authorizing Resolution which approves the sale of the 2009 Series A, B and C Bonds and, in order to afford Utilities staff the flexibility to determine when market conditions are best for pricing the fixed-rate Bonds, delegates certain authority to the General Manager or his designee to determine specific details with respect to the 2009 Series A, B and C Bonds.
This delegation authorizes the General Manager or his designee:
(i) to determine, among other things:
(a) the aggregate principal amount of the 2009 Series A, B and C Bonds to be issued to fund Costs of Acquisition and Construction and to convert the Utilities System Commercial Paper Notes, Series D to a fixed rate;
(b) in the case of that portion of the 2009 Series A, B and C Bonds to be issued to finance Costs of Acquisition and Construction that can be financed on a tax-exempt basis, to determine, on a maturity-by-maturity basis, whether it is more economic to issue such Bonds as traditional fixed rate tax-exempt bonds or as taxable Build America Bonds for which the City will be entitled to re...
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