Memorandum
City of Lawrence
Finance Department
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TO: |
Dave Corliss, City Manager
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FROM: |
Ed Mullins, Finance Director
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Date: |
July 10, 2013
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RE: |
General Obligation Note Sale |
Background
The City Commission adopted Resolution No. 7025 on May 21, 2013 authorizing the sale of the Series I and II bond anticipation notes. The tables below provide a breakdown of the projects by proposed funding source. The Series I notes will be used to fund water and sewer projects. Prior to the May 1, 2014 maturity, it is planned that water and wastewater revenue bonds will be issued to pay the note principal. The Finance Department typically finances a project with a one year note and then refinances the project with a bond when the project is complete. The Series II note will be used to finance the construction of the Rock Chalk recreation facility, the related architectural fees, and the purchase of the land. The Series II note matures on October 1, 2014. The City Commission is requested to adopt Resolution No. 7031, authorizing the sale of the Series I general obligation note and Resolution No. 7032, authorizing the sales of the Series II general obligation note on July 16, 2013.
Note Sale
The City of Lawrence will be accepting bids for the sale of two series of temporary notes on July 16, 2013. The tables below list the projects that are proposed to be financed with Series I and Series II Notes. The amount financed includes issuance costs.
Series I Note
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Project Description |
Amount |
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Kaw WTP Supply Improvements |
$4,770,500 |
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Oread Storage Replacement |
3,952,600 |
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Water Tower Maintenance |
1,664,000 |
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Kaw Water Transmission Main |
7,836,400 |
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Waterline Rehabilitation and Replacement |
5,292,100 |
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Kaw WTP Mechanical Improvements |
1,535,000 |
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Wakarusa WWTP |
5,707,000 |
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KAW WWTP Backup Power |
1,081,600 |
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Inflow & Infiltration Reduction |
1,872,000 |
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Sanitary Sewer Rehabilitation |
1,416,000 |
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Pump Station Improvements |
1,140,000 |
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Total |
$36,267,200 |
Series II Note
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Project Description |
Amount |
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Rock Chalk Park Recreation Center |
$10,500,000 |
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Architectural Services |
925,000 |
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Land Purchase |
784,050 |
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Total |
$12,209,050 |
Action Requested
The City Commission is requested to adopt Resolution No. 7031 and Resolution No. 7032, authorizing the sale of general obligation notes Series I and Series II, respectively.