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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: April 17, 2015
SUBJECT:
An Ordinance Authorizing and Providing for the Issuance of $28,035,000.00 Aggregate Principal Amount of Waterworks and Sewerage Revenue Refunding Bonds, Series 2015-B, of the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, for the Purpose of Refunding Certain Outstanding Revenue Bonds of Said City Relating to the Combined Waterworks and Sewerage System of said City, Prescribing all the Details of Said Bonds, Confirming the Sale of Said Bonds, Providing for the Collection, Segregation and Distribution of the Revenues of the Combined Waterworks and Sewerage System of Said City in Relation Thereto, and Related Matters.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the Series 2015-B Waterworks and Sewerage Revenue Refunding Bonds.
BACKGROUND:
In August of October of 2006, the city issued its Series 2006 Waterworks and Sewerage Revenue Bonds for the purposes specified below:
The true interest cost associated with the issue was 4.57%. The final maturity of the bonds included in the issue is December 1, 2036.
DISCUSSION:
Based upon an evaluation of the outstanding Series 2006 Bonds and currently available borrowing rates, we have determined that it would be advantageous to completely refund the series (except for the bonds maturing on December 1, 2015). Currently, $28.7 million of the series' principal is outstanding.
Attached is a draft ordinance authorizing the issuance of the refunding bonds. The final ordinance will be prepared after the bonds are sold and the exact interest costs are known. However, we believe that we may be able to garner net present value savings of about 9.0% (or $2.5 million).
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the attached, proposed ordinance that would ...
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