Memorandum
City of Lawrence
Finance Department
|
TO: |
Dave Corliss, City Manager |
|
FROM: |
Ed Mullins, Finance Director |
|
DATE: |
September 3, 2014 |
|
RE: |
General Obligation Note and Bond Sale |
Background
The City of Lawrence has two notes maturing on October 1, 2014. The first is Series 2013 II in the amount of $12,270,000 and the second is Series 2013-III in the amount of $43,205,000. The projects funded by the notes must be refinanced with either a bond or another note. The table below provides a breakdown of the projects by funding source. The Finance Department typically finances a project with a one year note and then refinances the project with a general obligation bond when the project is complete. The sale of the debt issues has been previously approved by the City Commission through the passage of Resolution 7084. The City Commission is requested to adopt Resolution No. 7090, authorizing the sale of general obligation notes; Ordinance No. 9038 and Resolution No. 7091, authorizing the sale of the 2014 Series A bonds; Ordinance No. 9039 and Resolution No. 7092, authorizing the sale of the 2014 Series B bonds.
Projects
The tables below list the projects that are proposed to be financed with notes and bonds. The amount financed includes issuance costs. The bonds will finance the construction of the library and the new recreation center. General Obligation Bond Series B will be paid with sales tax revenue.
Notes
|
Project Description |
Amount |
|
Farmland Streets |
7,248,234 |
|
Farmland Sewer |
894,016 |
|
2014 ITS |
397,162 |
|
G. Williams & Bob Billings Signal |
273,048 |
|
Emory to Michigan turn lane |
49,645 |
|
Carnegie roof |
99,290 |
|
Parking garage benefit district |
838,980 |
|
City Facilities |
577,875 |
|
15th and K-10 intersection |
1,005,000 |
|
County Radio |
1,005,000 |
|
15th Street Kasold to Wakarusa |
603,000 |
|
9th Massachusetts to Delaware |
201,000 |
|
Yankee Tank benefit district |
552,750 |
|
Total |
$13,745,000 |
Bonds
Series A
|
Project Description |
Amount |
|
9th & Tennessee |
123,298 |
|
Library Expansion |
18,000,000 |
|
6th and Iowa |
643,082 |
|
2013 KLINK |
40,567 |
|
Iowa St 15th to Yale |
638,295 |
|
23rd Street (K10 Hwy) and Iowa |
656,518 |
|
Rock Chalk Park |
3,125,983 |
|
2014 KLINK |
332,693 |
|
Wakarusa Clinton to 6th |
1,047,504 |
|
Recycling Equipment |
2,205,863 |
|
6th and G. Williams Signal |
32,048 |
|
Art Center |
39,717 |
|
9th and Kentucky Signal |
19,858 |
|
Health Department |
59,574 |
|
Total |
$26,965,000 |
Series B
|
Rock Chalk Park |
19,595,000 |
Action Requested
The City Commission is requested to adopt Resolution No. 7090, authorizing the sale of general obligation notes. The City Commission is also requested to adopt Resolution No. 7091, authorizing the sale of the bonds and declaring an emergency and adopting on first and second reading, Ordinance No. 9038 to expedite the sale of the 2014 Series A bonds; and adopting Resolution No. 7092 and declaring an emergency and adopting on first and second reading, Ordinance No. 9039 to expedite the sale of the 2014 Series B bonds.