Meeting Summary
The City Commissioners held a special meeting to discuss and take action on funding Capital Improvement Projects. They approved recommendations from Bond Council and financial advisors for a February 2012 election, outlining specific bond propositions for various projects. Additionally, they authorized staff to negotiate terms for a private placement note to fund existing projects and refinance an older sewer system debt.
Key Decisions & Votes
Capital Improvement Projects Funding Method
40:00Commissioners instructed Bond Council and financial advisors to proceed with finalizing documents for proposed bond issues (sales tax and GO Bonds) for a February 2012 election, based on the projects, amounts, and financing sources discussed.
Issuance of Private Placement Note and Debt Refinancing
1:00:00Commissioners authorized staff and financial advisors to negotiate terms with lending institutions for a 3.25 million dollar private placement note to fund existing projects and to refinance an approximately $600,000 existing sewer system debt from 1997.
Financial Matters
Capital Improvement Projects Bond Propositions
Proposed bond issues for a February 2012 election, including a half-cent sales tax for Expo Center and Family Activity Park, and GO Bonds for various city improvements.
Proposition 1: Sales Tax
Half-cent sales tax for 10 years, beginning July 1, 2012, for Expo Center and Family Activity Park.
Proposition 2: GO Bond for Pool
General Obligation Bond for pool construction.
Proposition 3: GO Bond for Public Safety Communication Systems
General Obligation Bond for Public Safety Communication System upgrades, including dispatch/Emergency Management Area remodeling and radio tower improvements.
Proposition 4: GO Bond for Street Improvements
General Obligation Bond for various street improvements.
Proposition 5: GO Bond for Economic and Community Development
General Obligation Bond for Economic and Community Development, including sidewalks and neighborhood redevelopment programs.
Private Placement Note for Existing Projects
Funding for projects including Expo parking lot, RV electrical upgrades, Comfort stations, Library roof, Airport track, Cemetery building, and Squad 1 apparatus, to be paid from existing 1-cent sales tax.
Refinancing of 1997 Sewer System Debt
Refinancing an existing 5-year note for North sewer system improvements at a lower interest rate, generating Net Present Value Savings.
Potawatomie County Home Finance Contribution
Funds committed for parking lot improvements.
Election Cost Estimate
Estimated cost for the upcoming bond election.
Coming Up
Deadlines
- Election documents to be filed with County election board 60 days prior to election (deadline around December 14th for February 14th election)
Watch For
- Final approval of private placement note transaction, requiring six 'yes' votes from Commissioners
- Further details and refined 70% language for bond proposition descriptions
Agenda Summary
Item number one: Discussion, consideration and action on recommendations from Bond Council and financial advisors for the method of funding Capital Improvement projects as approved November 7th 2011.
Commissioners discussed proposed bond issues for a February election, including a half-cent sales tax for the Expo Center and Family Activity Park, and GO Bonds for a pool, public safety communication systems, street improvements, and economic/community development. Details regarding millage rates, project specifics, and legal language for the ballot were reviewed.
Item number two: Discussion, consideration and action regarding the issuance of private placement note setting the sum itemizing and prioritizing the projects authorizing staff and financial advisors to negotiate terms with lending institutions.
Discussion centered on funding existing projects (Expo parking lot, RV electrical, Comfort stations, Library roof, Airport track, Cemetery building, Squad 1 apparatus) through a 3.25 million dollar private placement note, to be paid from existing 1-cent sales tax. The possibility of refinancing a 1997 North sewer system debt (approximately $600,000) at a lower interest rate was also considered.
Item number three: Motion to adjourn.
Motion to conclude the special call meeting.