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TO: Mayor Richard C Irvin
FROM: Chris Minick, Chief Financial Officer/City Treasurer
DATE: December 2, 2024
SUBJECT:
An ordinance providing for the issue of not to exceed $40,000,000 of General Obligation Bonds of the City for the purpose of financing certain capital improvements, providing for the levy of taxes to pay the Bonds and authorizing the sale of the Bonds to the purchaser thereof.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the Series 2025 A and B General Obligation (GO) Bonds.
BACKGROUND:
The City's Capital Improvements Plan and 2025 City Budget call for the financing of various capital projects through the issuance of General Obligation Bonds of the City. The major projects include initial construction costs for Fire Stations 9 and 13, River Edge Park expansion, Bilter Road Improvements, purchase of the Parking Garage located at 2 New York St and various other improvement projects.
The attached draft ordinance is the first official step in selling bonds to finance these projects. The ordinance is structured as a "parameters ordinance" and sets forth various conditions under which sale of the bonds is approved, providing the terms of the bonds are within certain parameters as defined in the ordinance. We have structured the ordinance to provide some flexibility to take advantage of the most beneficial bond structure given market conditions at the time of bond sale.
DISCUSSION:
We intend to sell the 2025 GO Bonds during late January/early February of 2025 to provide resources and financing for the aforementioned projects.
The final bond ordinance will be prepared after the bonds are sold and the exact bond related costs are known.
The bonds will be issued in 2 series. Series 2025 A will not exceed $25 million and will be issued as a tax exempt issue. These bonds are typically issued for general infrastructure projects. Series 2025 B will not exceed $15 million and will...
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