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Council advances parameters ordinance to issue up to $25 million in notes; PFM cites 5.5% interest cap and expects about $12 million issuance
Summary
Council discussed and advanced (roll-call recorded 6–0) a parameters ordinance authorizing up to $25 million in general obligation notes to refund prior bond series; PFM advised an upper interest rate of 5.5% and estimated an actual issuance nearer $12 million.
Council considered a parameters ordinance (Bill number 24 20 26) authorizing issuance of general-obligation notes in a maximum aggregate principal amount of $25,000,000 to refund portions of several prior bond series. The parameters ordinance gives the city flexibility to include multiple prior issues and sets terms governing interest, maturities, and other details.
Scott Cheer of PFM, the city's advisor, told the council the upper interest rate would be 5.5 percent and that the likely transaction size would be closer to $12,000,000 rather than the full $25,000,000 authorized. "The interest rate will be 5.5 percent," he said. Council voted on the parameters ordinance and the clerk recorded 'Aye' votes; the motion passed 6–0. The ordinance anticipates further paperwork with the Department of Community and Economic Development and compliance with SEC Rule 15c2-12.
