Loading...
HomeMy WebLinkAboutCC AG PKT 2010-11-08 #O AGENDA STAFF REPORT DATE: November 8, 2010 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Robbeyn Bird, Director of Administrative Services/Treasurer SUBJECT: ISSUANCE OF SEWER IMPROVEMENT BONDS SUMMARY OF REQUEST: Staff is seeking Council direction to pursue a refinancing of sewer improvement bonds originally issued in 2000. BACKGROUND: In 2000, the City issued $4,230,000 of Certificates of Participation to finance sewer improvements. The amount currently outstanding is $3,460,000 at an interest rate of 5.6 %. By refunding the prior bonds at 3.77% the City Sewer Enterprise Fund could save $20,000 annually, or about $290,000 net present value. DISCUSSION On October 13 a meeting was held at city hall to discuss the potential savings from a sewer improvement bond financing. In attendance were Michael Cavanaugh and Todd Smith of Southwest Securities Group; Robbeyn Bird, Director of Administrative Services; and David Carmany, City Manager. Based on the City's consolidated annual financial report and credit factors Southwest Securities Group considers a refunding transaction viable. Attached to this report is a synopsis of the scenario prepared by Southwest Securities Group with the refinance as a fixed rate transaction, with the same amortization period as the existing debt. Following this approach the City will save approximately $290,000 by paying off the debt in the same time at a lower interest rate. Agenda Item 0 Page 2 ALTERNATIVES 1) Structure the bonds to provide for more upfront savings rather than level savings over the amortization period. 2) Structure the bonds to retire the debt earlier. 3) Do not refinance the 2000 sewer improvement bonds. FINANCIAL IMPACT: No impact at this time. RECOMMENDATION: It is recommended that the City Council: 1) Receive a presentation from Southwest Securities Group about the refinancing transaction. 2) Direct the City Manager to proceed with the refinance of sewer improvement bonds only as a fixed rate transaction, with a minimum Net Present Value savings of $250,000 SUBMITTED BY: NOTED AND APPROVED: •Bwd ®ice Robbe n Bird, CPA David Carma y, City Manager Director of Administrative Services/Treasurer Attachments: A. Southwest Securities Group synopsis • . mc i V o co 0. m , r � ,P �'N ° �,'/ o be 0 1 ` � 2 Ca 1 fQIliII.� . ! . s \0; C w in • ,V. k ,'I Q; 4) +a • 4— 4 ,,o , I I a oc u O o l ',- 3 j _ , CU > eti V cu N CO N Q U = c c 4 — (0 Q) fa c i O .4 1 a-+ O c O � O " 0 O = O N u rn en c -N L CO .4% m _ >- E " ' a . O i -+ = E �: c N c co N O a 0 o l a CO 0 A , U Q - W fa N II N N M .■ +� O a 0 c N c) V) > o U a--' a, a) L cu X cv L c to to LlJ U > U CO a) 9. co a) O - N c = m r a) cn O O O a) co a H Q) a p C N m L S✓ > isi Ln 0 a-` co t O 03 L C C >I- q O U '— lD L , N C _E O �1 Q % it i o = I- D 2 O +j n M 'L 4-- a = L 0) D V .0 N i tn- a = O 0 a CC 0w m - U c c) a ❑ Vr- ■ ■ �° M N ,ti O L n m O > N .� L . - N .. M O m o N V Ol Vl Ill n C' n 7-7 N . .. Y Ol o 0 N 1.0 Cl 00 n l0 ° =3 O LA O V N N - O O O O N LL .. 4 41 +-+ "_ g1 o (� No01 j';`,. .,.. 0 _c co 00 m o n d'lm a .4, -ut '^' m tf X b r N N al V Ill V Ol }� C .Y. . W - "' . C 1 J O Ql M n n l0 O 00 m N 0 E O D a 2 '`, a m V N In C o n In r V M M E � v c m ( m o m o v o v m v �1l C m > • N 01 00 in m .-I .-I ,-I ,-I ,-I LI V ^ O Os O C LL:'Ov .... in - 0 N a v `° °' m „,_,,,.....,,.,, , w 0 3 m s o V l a m m w .er 7 x u O � w' v ¢ o m o = m `5 a- v c S o 0 3 N c 3 v m o z A IIM I _ �, I N > C N Y - O al v -0 N . W }+ c I LL I./ , Z In m O 0 In Q .? 2 O F- CO ° o ' II -a o o r. o 0) CO3 T i LL H Q N � I. Ca v i , TO N S1. 1 y ` w ° a n m rn LID m ri {•�+ I LL I o _ v o I x eta -C CD ka- +' 03 ;Y LL cu 7:1 V (� III ri- 1 m W z co - � ' 2� 3 0 C o (o �= C2' • > ' ” , O w 1 m N a i w : iit. (Mtn CA To CU e‘ I I N m . N m v 48 r i lll M � x . 0 CC Ill tn SD CL) 4- L CIO – f6 M in Q 4 le in E LL to W y 11 - 6 v O >, (� C 0 CU C ii Q C m i - 7 w V) 0 _v o C — u? > D CD N 01 00 N N N N N N N N N N N N N N N CO 00 CO 4l1 in T o r. N n r o N. N N N N n N N N n n 01 O N C /� \ y1 N N O M VI N O V1 00 00 cc; m m m M O N 1p R ei M V . / N vt n m at •a 00 m CO W CO N O m 0 1.0 N. V1 01 CO m MO 0 l0 N C O N .1 N LO N .l N N N el O l m of N ID m 01 U e Ili l e O t0 v e 0 vi to h I: tc tri ri vi r et o tc a CO n N. N N. N. N. N. N IN N N N. N. N N N I. n N ry 2 `i N N N N N N N N N N N N N N N N N N `-' el c N CO � y 111. N O C l(,� m T y 0 OJ 00 W CO CO CO CO CO CO CJ 00 CO CO CO Co 00 00 00 V N V t0 N N N N N N N N N N N N N N N N N N 1l1 N ai u Di of 01 m a; Di of m a; 6 a1 D1 01 6 m Di ai D1 o r Sme �J 2 e D1 m m 01 m m 01 01 01 m 01 m 01 m 01 01 01 01 01 0 00 l 0 ea M In m m m m m m M m t+1 m m m CO m M r1 CO el N 00 lD tD LO t0 LO LID LO 40 lD tD lD lD o tD lD 0 to to O C 0 1:5 a 0 `r l el el el e el el el e l el el el el e l el el el e4 el el el W CO ID En — • 0) L. O . N m l0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 l0 tD N. (n to N o V1 O o 0 o Ill V1 Il1 0 0 on Ill 0 o N N n tD es ID el o N Ill 1l1 6 Ill N N n Ill o ni N o Ill L6 01 c o • N 0 a 0 o N. II1 V1 N 01 LO 00 CO OO N 0 el lD t 01 t0 N CL/ CO CO . -- t m a v m N . ` I CO tD N LO in .i o to V1 m m lD al 0o m N m .-■ o O el A y Vf tO .4 V1 Ol rtl tD CO O try (rt r rvf tV .4 ai r - : u .4 01 Io LO . 0 01 CO LO In .1 .. ■■ e, e, .l el el e, e. .. ., ,V N E In o ggezRata°aaa°aea°a^a'a°aeaea • 0 o I o In o 0 0 0 In N In In In In In In In In In O N N Ill N V1 0 Ill 0 N N N N N N N N N N N c _, 0 tl1 1l1 V1 of u-; Ili t V1 V1 N ; A m 0 0 0 0. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 WLU a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 re lg I■ Sion e 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �� O CD l o 0 0 0 0 0 O o 0 o 0 0 0 0 0 0 0 o 0 0 0 C O 1!1 O N 0 O Yf N O co O O O O O O VI O O V1 0 O O e'1 .� N m m O Vl lD N. CO 01 O el N m Ill l0 N 10 • � > a el e4 el el el el el el el r el el el N N N N N N N R L m „ V L /L O OON.s CD CL .w N e N m O N to I. CO 01 O el N CO Q N 0 N W al 0 v el el el .l el N el el e1 N N N N N N N N N N CO C1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 •� >- N N N N N N N N N N N N N N N N N N N N c o \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 9 - .'1 ed el el el el el el el el ey el el e4 el el el el el �/ C \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ �l.IeI ■ �0 to LO t0 b to t0 0 l0 m t0 to tO l0 to tD LO ID tO LID 00 ■ w V in • IV o 03 v c a, 41 C !? N L C i >v O . o- r<< 3 L10 7 4J E 41 • V r N N N 4.-• N IL C N . Q VI d4 � O D o C ii O 110 b 0 P N •> U c yJ D 4 C C CO 4-1 N o O - a .E N c v a� o v Q C 0 cr c a L1 S +- 0 7 7 O 7 N N. ` C > L 4J Ls'? N N 4 - t+.. fh cu CO m J u s O— co co o4 II � U CC C o to 0000000000000 000 to o co C o o m m m co ro m ro C m m m m m m m o o oe a (� N .'-I W rl M 00 M O 00 ..;21: .-0 .-1 0l ri r m M ri W t0 m 0 . - C N n M n n 01 N N U1 U1 N a 00 r a n a n N n • CO a a a L001 N 0 r n r o c0 0l 1 r a to t0 a 0 n CO N r N DJ Ol r N 01 O N 01 r n O r N CO 01 O N M H N N N r r N N r N N r N r r N N r r N N r a O 0 O y o CO N N N N N N N N N N N N N N N CO 00 CO tl1 2 01 01 n N n n n n N N N n n N N n n 01 a n a N H N 11 N M 0 0 1 � LO M 0 0 0 N O el 0 V n U 0 M M ni C N CO N CO N r n t0 N r n n N r a r Al 01 n t0 M of • 0 0 n U) V O re) t0 V N V U) t0 n N to N M 111 n (1 1 0 in O co CO n n n n n N IN N n n n n n n n n N N Ni N N N N " O r N N N N N N N N N N N N N N N " r Uj a N O O L Q ,...9 0( T N N N N N N N N NN NN N N N N N N CO n C 01 c CFI a 01 m m m a a a Cr Cr Cr m ol Cr s o1 a v1 0 1- C 0 :13 Pi CJ N e-1 .-I 6 l0 6 01 a t0 V U1 U1 ✓1 n N o1 6 00 01 C O co M CO N Cr M r N r M n N N a 0 0 0 r N U1 CU CO O t 01 N n a N N a 0 r a m t0 r N CO 0 01 a r N 01 r U V 1 2 ° O IA LA LA U LA LA LA LA LA N N In h N in U N U1 V ti N N r N N N N N N N N N N N N N N N N N N "" n - 0 CC 2 in a >` II m N ¢ 01 00 00 00 cD 00 00 00 00 00 00 00 00 00 00 m 00 00 m m .=i L C to n N U1 U1 N N N U1 U1 to N N N U1 N N N N N U1 CO O N n n n n n n n n n n n n n n n rC n N O al 5 tY 01 a a a a a Cr a a a a V a a a a Cr a a N 01 c lD 0 0 to l0 to 0 0 o t0 t0 CO to to o t0 0 0 ID v1 CO L N y N t0 t0 t0 b 6 tD 6 0 6 6 6 t0 tD b 6 t0 6 t0 N a C n 01 CU ( N M cu an f"' C . f0 H 1,/) a a- > W w 0 4— O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO + n CO � U N N 0 N N O N � 1 O tl1 U1 0 0 0 0 0 O 0 0 n t�/t 0) 1 6 00 0 0l 01 a a M n N a N M lr1 M 6 O n a N o1 C a) C 01 a 0 O co o 01 03 t0 b 0 N CO 03 N 01 N CO 0 Cr CD L/1 O n CO N 0 L 9 n O. 01 N 01 r4 00 V O 01 vi N U1 M 6 n V V of 01 a0 Tt C VD t0 U1 t0 N CD N l0 tD U1 t0 0 0 o t0 U1 l0 t0 U1 N O y r N N N N N N N N N N N N N N N N N N N r 11 O W rg C 4.1 w ce v 111. H VI VI CO 4W. z vi? L r Cr a r N Al M a N U1 0 n CO 00 01 0 In t0 N 00 01 0 Q O tE r r r r r r r r r N N N N N N N N N N M O CU o 0 0 0 0 0 0 0 0 0 0 o O o 0 o O O O o 3.- N N N N N N N N N N N N N N N N N N N N '0 r r r • r r r r r r r r r r r • r r r r r r A CC ■ C 0 0 0 • 0 0 0 0 0 0 0 0 0 0 0 ▪ 0 0 0 0 0 0 V m l0 t0 lD tD tD tD 0 t0 tD b t0 t0 t0 tD t0 tD tD l0 l0 l0 N _ v To U Y Ill 1.- ` rWA.v N a, t: C O O V) cv Y d 7 c O Q ++ i+ ` U N O <a v U U N S O_ U C - O C Y a) Y = co _ o C V N 7 lei • C LL m 0 LL H = ! O N m 0 LL c cc cu d � c Q m 0 m 0 7 It Q Q Q < < < 2 m < < =MB a LL ,g; 7 CO Co Co N co y N 2 d a) c o f C y O CO ._ 0) t ) v y d � m d m Q m w c 0) u K c a Cl- a c c a V c . a a n o N v m Q� m a U v W v c • N E H o a c — at T ✓ A 0 a r j 0 c c LL CD a U o `_ K o o cg m m v - o o c o r m N CO a c d �O a m o E m c a) CO ° d N N CO c O r m° N tP :: 0.) m m a a o o o ° ° c y r co cU a. m 'u o • (_ ' O C C a rT V a O) p 0- CI CO N ° C >1). ° V '8 - a s ` t CO a 'c N U . N MI Y ILL � co co a tc Q m,- C Q a a ` a ` i i 0 ` a 0 ( O O iI) O s 0) O p° O m O C q O O O lh ' ° r N O O I� y 5 N5 T a t r o `N. N N> N> 1) r ° <y s ryry `‘i O 1- 9 .- a � O N� e N a V' O N CI a U a U a U a o a o a o 2> a Q 2 U' U O U o U ° C a C �/ CII) 303o3o3z3z 3z z° 3z o ~ o 3 0 3 0 = , ' 3 ' lip 2 w W % ©99119® FORDO 000 ®® 09 ®119® >F— ;MODEM 990® ©990® - 110900® _E 2 ft 1111101111 r< 99®® - ©9900 2 9900® r- D . 909011® 990® m 00900 a"® ©990® p W I ®99909 > 9900 ®08110 = ®0990® NN XI M0990® O ®00 0 ®09011 - 0©9913® o ? ®©990® 0900 1® ©990 -® ©9900 0 LAW ^, N fl% � /� K/ � it ,v L. T O •9105 0 co co O m c O c co O co Ni i t/} >- co L L- 0 o a) N f6 Ti X O O co m o CU c - L 0 a) O O 6 Q ._ N E vi co o Q 0 -1-) O n V N M C O c n3 co ° a U a) r 40 w c co o � " > cu - 0 cv c a) .12 CID C N \ L C Es D - 0 O = cn v N Ls— CU O Q 4- ' ba n3 CO V • (0 N wW a (n C L • O 0 •— f a CO = M �� +� I t °' Q U O v �' = Vi CU n a) C H cC a) O O W 1- 0 i co I- VI? • • • S CO 0 ` ri -c strne N N O U a) C 5 C ° O M (7, cr.. E CU vi (n < r- (.0 Lfl O L ;a, c (, Ni 00 N U M NI al tj cE d v O N to M N O O � CD L!'1 -a U N = a ▪ 5 1 t CD _c C L aJ N + N N a--' F- ° o U E N 4-1 U 4- U I N p (ji - 2 O c "' m u ln N V Ca 4•• c o o ri N ^ O V " °' �. c O E t c — = M N r-I I. O U d4 a) vi N CD N d' Z 'a O . < 00 Co N -1-' (0 N }, r-I U N 00 1 (.1 C N •C O - CD 0 v) V) M N T L = r 0 CO M 0 g — U A a ) ( to N U U N O 0 al w (/t o Tv 5 }' t N CD r -{ D W w a CI) a-.+ 4-$ .� N co co > f— A fa L a) N _ t . 2 n3 r s .. v (B = d`' 9 U O U X > HD m 2 c c U W.: c0 41 (0 � .8 cn p N 0 0 U VI Lfl N m U in S" in O N IA �