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: |
February 25, 2014
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RE: |
Resolution No. 7063, authorizing General Obligation Series I and II Note Sale Resolution 7064, authorizing project funding under Charter Ordinance 27 |
Background
The City of Lawrence has a note maturing on May 1, 2014 in the amount of $36,300, 000. The projects funded by the note are not yet complete. It is recommended that these water and wastewater projects, as well as additional ones from the Master Plan be funded by a note issue that will mature May 1, 2015. The table below provides a breakdown of the water and wastewater projects. The Utilities Department has provided a memorandum summarizing the new projects to be approved by Resolution 7062.
In addition, it is recommended that the purchase of Fire apparatus, the improvement of 31st Street, and various other road improvements be funded by a note that will mature on October 1, 2015. The $5.7 million in costs associated with those projects are itemized below.
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 projects that are being noted have been previously approved by the City Commission through the passage of resolutions. The City Commission is requested to approve Resolution xxxx authorizing the sale of general obligation notes and Resolution xxxx establishing the amount of water and wastewater projects that can be funded under Charter Ordinance 27.
Projects
The tables below list the projects that are proposed to be financed with the Series I and II Notes. The amount financed includes issuance costs.
Series I
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Project Description |
Amount |
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Kaw WTP Improvements - raw water intake |
$4,779,809 |
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Oread Storage Replacement and Booster Pump Station |
3,960,131 |
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Kaw Transmission Main |
7,851,831 |
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Water Tower Maintenance and Pump Station Improvements |
1,667,170 |
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Waterline Replacement |
4,749,930 |
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N. Iowa Waterline Replacement |
551,048 |
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Kaw WWTP Improvements |
1,537,925 |
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Wakarusa WWTP - Influent Pump Station and Force Mains |
20,626,066 |
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Kaw WWTP Backup Power |
1,083,661 |
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Inflow & Infiltration Reduction |
4,292,982 |
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Sanitary Sewer Rehabilitation |
1,851,731 |
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Pump Station 4 and Force Main Improvements |
1,142,922 |
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19th & Kasold Pump Station |
411,411 |
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Water Main Assessment, Replacement |
4,594,553 |
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Clinton Intake |
1,455,354 |
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Clinton Taste & Odor Process |
1,549,748 |
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Sanitary Sewer Relocations and Plant Imp. |
728,728 |
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Total |
$62,835,000 |
Series II
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Project Description |
Amount |
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Fire Equipment |
$656,138 |
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Harper, Haskell, Princeton, Vermont, 15th, 19th Street Improvements |
1,032,345 |
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31st Street Improvements |
4,006,517 |
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Total |
$5,695,000 |
Action Requested
The City Commission is requested to adopt Resolution No. 7063, authorizing the sale of general obligation notes Series I and II and Resolution 7064, establishing the maximum annual bonding amount for water, sewer, and public improvements, pursuant to Charter Ordinance No. 27, at $65,000,000.
Adopt Resolution No. 7062, authorizing $32,000,000 to fund the 2014 projects in the water and wastewater master plans, pay for issuance costs, and establish a debt service reserve fund.