Meeting Summary
The city council approved an environmental agreement for the Warren Theater project, contingent on final wording review. They also approved multiple resolutions related to a significant bond issue, not to exceed $50 million, for the Midwest City Economic Development Authority, aimed at securing a 30-year fixed-rate financing. Additionally, the city's financial audit for June 30, 2017, was accepted, highlighting an unmodified opinion and future impacts of GASB Statement 75.
Key Decisions & Votes
Environmental Agreement for Warren Theater
00:00The council approved an environmental agreement for the Warren Theater site, contingent on the City Attorney and City Manager's final review of the wording. This addresses indemnification for past environmental issues related to leaking storage tanks, with the Corporation Commission expected to cover costs.
Midwest City Municipal Authority Bond Issue Resolution
29:00A resolution was adopted authorizing the Midwest City Municipal Authority to incur indebtedness not exceeding $50 million for the Town Center Plaza project, approving a replenishment agreement to backstop the bonds and secure a 30-year fixed rate.
Midwest City Economic Development Authority Bond Issue Resolution
31:00A resolution was adopted authorizing the Midwest City Economic Development Authority to issue economic development revenue bonds for the Town Center Plaza project, taxable refunding series 2018, not to exceed $50 million, and waiving competitive bidding.
Acceptance of Financial Audit for FY2017
49:00The financial audit report for the City of Midwest City for the fiscal year ended June 30, 2017, was accepted. The audit received an unmodified opinion, the highest level of assurance.
City Concurrence for Economic Development Authority Indebtedness
51:00The city council approved a resolution concurring with the Midwest City Economic Development Authority's incurrence of indebtedness, waiving competitive bidding, and authorizing the sale of bonds, which is required as the city is the beneficiary.
City Concurrence for Municipal Authority Indebtedness
52:00The city council approved a resolution concurring with the Midwest City Municipal Authority's incurrence of indebtedness and approving a replenishment agreement, finalizing the city's blessing for the bond issue.
Financial Matters
Environmental Remediation for Warren Theater Site
Costs associated with environmental cleanup of former leaking storage tanks at the Warren Theater site are expected to be covered by the Corporation Commission's UST indemnity fund.
Economic Development Revenue Bonds (Town Center Plaza Project)
Authorization for the issuance of taxable refunding series 2018 bonds, not to exceed $50 million (anticipated $47-47.5 million), with a fixed interest rate not to exceed 6.5% over 30 years, callable in 8-9 years.
Financial Penalty for Bond Issue Delay
A potential financial penalty would be incurred by Sooner Town Center if the bond closing is delayed past March 1.
Rating Agency Fee for Bond Issue
A fee will be incurred for the bond rating process, which will be wrapped into the bond issue amount.
Financial Audit for FY2017
The city received an unmodified opinion on its financial audit for the year ended June 30, 2017, indicating a strong financial position.
Other Post-Employment Benefits (OPEB) Liability
The city's OPEB liability is projected to increase from $9.7 million to over $22 million with the implementation of GASB Statement 75 next year, due to changes in actuarial calculations and discount rates.
Capitalization Threshold Recommendation
Recommendation to elevate the capitalization threshold for assets from $1,000 to $5,000 to align with federal statutory requirements and GFOA recommendations.
Coming Up
Deadlines
- Bond closing by the end of February to avoid a financial penalty.
- Implementation of GASB Statement 75 next year, impacting OPEB liability.
Watch For
- Final wording of the environmental agreement for Warren Theater.
- Negotiations and finalization of bond purchase and replenishment agreements.
- Impact of GASB Statement 75 on the city's financial statements.
Announcements
- The City of Midwest City's finance department was recognized for its excellent work, with four staff members being CPAs, and for its efficiency and accuracy, which contributes to lower interest rates on financial instruments.
Agenda Summary
Environmental Agreement for Warren Theater Incorporated
Discussion and consideration of an environmental agreement related to the former gas station site for the Warren Theater project, addressing indemnification for environmental issues (leaking storage tanks).
Resolution for Midwest City Municipal Authority Indebtedness
Discussion and consideration of adopting a resolution relating to the incurrence of indebtedness by the Midwest City Municipal Authority, not to exceed $50 million, for the Town Center Plaza project, authorizing a replenishment agreement.
Resolution for Midwest City Economic Development Authority Economic Development Revenue Bonds
Discussion and consideration of adopting a resolution authorizing the issuance of Midwest City Economic Development Authority economic development revenue bonds for the Town Center Plaza project, taxable refunding series 2018, not to exceed $50 million, waiving competitive bidding.
Accepting Financial Audit of the City of Midwest City for Year Ended June 30, 2017
Discussion and consideration of accepting the financial audit report for the City of Midwest City for the fiscal year ended June 30, 2017, presented by RMS.
Resolution for Midwest City Economic Development Authority Indebtedness (City Concurrence)
Discussion and consideration of a resolution relating to the incurrence of indebtedness by the trustees of the Midwest City Economic Development Authority, waiving competitive bidding and authorizing the sale of bonds, requiring city concurrence.
Resolution for Midwest City Municipal Authority Indebtedness (Final Concurrence)
Discussion and consideration of a resolution relating to the incurrence of indebtedness by the trustees of the Midwest City Municipal Authority, approving a replenishment agreement, serving as the final city-side concurrence.