DATE: September 27, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
Mike Lowe, Comptroller
SUBJECT:
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Report of Account Balances from 2017 Bond Issues
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Purpose
The purpose of this memo is to provide information to the Budget and Finance Committee concerning the amount of bond proceeds remaining from the sale of the Series 2017 Water & Sewer Revenue Bonds and the Series 2017 General Obligation Public Improvement Bonds.
Background
In the first half of calendar year 2017, the City issued $12 million of Water & Sewer Revenue Bonds for the purposes of upgrading the City’s Water Filtration Plant and $23,120,000 of General Obligation Bonds to fund various general government capital projects, primarily in the areas of transportation, communication equipment and fire apparatus. In accordance with IRS rules for issuance of tax-exempt debt, the City is required to spend the proceeds within three years of issuance along with meeting certain spending milestones throughout the period. This report is an update to the Committee on the balances in these two accounts.
Financial Impact
As of 9/25/2017, the cash balance in the Water & Sewer Bond account is $6,622.06 (almost 100% spent) and the balance in the General Obligation Bond account is $15,740,197.13 (41% spent). Please see attached schedule for more information. Both bond accounts are in compliance with expenditure requirements for tax-exempt bond proceeds.
Recommendation
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No action is required.