Memorandum

City of Lawrence

Finance Department

TO:	Dave Corliss, City Manager
FROM:	Ed Mullins, Finance Director
Date:	May 15, 2013
RE:	2013 Series I and II General Obligation Note Sale

Background 

The City of Lawrence needs to provide funding for several projects previously approved by the City Commission.  The City Commission reviewed the five year capital improvement plan for water and sewer projects on March 12, 2013.  Subsequently, on March 26, the City Commission adopted Resolution No. 7019 authorizing the issuance of debt to finance up to $36,300,000 for projects that were part of the master plan.  Previously, the City Commission adopted Resolution No. 6717 that authorized debt financing for the Wakarusa Wastewater Treatment Facility.  The table below provides a list of the projects that will be initially financed by a general obligation temporary note maturing on May 1, 2014.  The note will be retired with the proceeds of a future revenue bond.

On February 19, 2013, the City Commission adopted Resolution No. 7008 to fund the construction of the Rock Chalk Park recreation facility, in the amount not in excess of $25,000,000, and Resolution No. 7010 to fund the construction of related water and sewer projects, in an amount not to exceed $1,082,600.  The City Commission will need to adopt Resolution No. 7009, which authorizes debt financing for the Rock Chalk Park street improvements, in the amount not to exceed $1,223,340.  Because of statutory requirements, the resolution will need to be voted on again. The Rock Chalk Park projects will be initially financed with a general obligation note maturing October 1, 2013.

The City Commission is now requested to adopt Resolution No. 7025, authorizing the sale of general obligation notes on July 16, 2013. Charter Ordinance No. 27 requires the governing body to annually set a maximum amount of notes and bonds that may be issued by the City for the purpose of paying for costs of improvements authorized pursuant to Charter Ordinance No. 27.  Since the water and sewer projects and parking lot improvements at the Riverfront Mall and along Delaware Street were authorized under Charter Ordinance No. 27, Resolution No. 7026 will also need to be adopted.

Projects

The tables below list the projects that are proposed to be initially financed with general obligation temporary notes.  The amount financed includes issuance costs. 

Series 2013 I Notes

Project Description	Amount
Kaw WTP Supply Improvements	$4,770,500
Oread Storage Replacement	3,952,600
Water Tower Maintenance	1,664,000
Kaw Water Transmission Main	7,836,400
Waterline Rehabilitation and Replacement	5,292,100
Kaw WTP Mechanical Improvements	1,535,000
Wakarusa WWTP	5,707,000
KAW WWTP Backup Power	1,081,600
Inflow & Infiltration Reduction	1,872,000
Sanitary Sewer Rehabilitation	1,416,000
Pump Station Improvements	1,140,000
Total	$36,267,200

Series 2013 Series II Notes

Project Description	Amount
Rock Chalk Park Facility and Parking	$19,288,443
Rock Chalk Park Water & Sewer	$1,082,600
Rock Chalk Park Streets	$1,223,340
Total	$21,594,383

Action Requested

The City Commission is requested to adopt Resolution No. 7025, authorizing the sale of 2013 Series I and 2013 Series II general obligation notes.  The City Commission is also requested to adopt Resolution No. 7026, setting the maximum amount of bonds that may be issued under Charter Ordinance No. 27 in 2013 at $38,500,000.  Finally, the City Commission is requested to adopt Resolution No. 7009 to authorize debt financing for the Rock Chalk Park streets, in an amount not to exceed $1,223,340.