DATE: November 13, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
Title
Consideration of Resolution 2014-83, a Resolution to Issue Capital Improvement Bonds in an Amount Not To Exceed $15 Million
Body
Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the funding of previous approved capital projects with general obligation bonds.
Background
With the adoption of the 2014-2018 Capital Investment Program, the Board recognized the parameters of the debt capacity model prepared by Public Financial management, our financial advisory firm. Included in the model was the expectation that approximately $15 million in bonds would be required in the fiscal years ending in June, 2015 and June, 2017. In order to begin the issuance process, an initial resolution is required declaring the intention of the City to issue debt. Resolution 2014-83 incorporates the language needed to move forward with the process.
Financial Impact
The financial impact of issuing these bonds is incorporated in the debt capacity model and the 2014-2018 Capital Investment Program, as amended. The precise numbers that would accrue to annual debt service will be determined by the prevailing interest rates at the time of issuance and the principal repayment structure. At current market rates, the estimated debt service is would be $900,000 per year.
Recommendation
rec
Staff recommends approval of the initial bond resolution, as prepared by our bond counsel