TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: October 2, 2013
SUBJECT: title
An Ordinance Providing for the Issuance of $9,565,000 Aggregate Principal Amount of General Obligation Refunding Bonds, Series 2013, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, Confirming the Sale Thereof, and Providing for the Levy and Collection of a Direct Annual Tax for the Payment of Principal of and Interest on Said Bonds.
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PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the Series 2013 General Obligation Refunding Bonds.
BACKGROUND:
In August of 2006, the city issued its Series 2006 GO Bonds for the purposes specified in the attached spreadsheet. The true interest cost associated with the issue was 4.67%. The final maturity of the bonds included in the issue is December 30, 2036.
DISCUSSION:
Based upon an evaluation of the outstanding Series 2006 GO Bonds and currently available borrowing rates, we have determined that it would be advantageous to refund a portion of the Series 2006 GO Bonds. About $9.3 million of the series with maturities between December 30, 2019 and December 30, 2025 are good candidates for refunding.
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, our target for savings is a net present value of 4.0% (about $370,000).
IMPACT STATEMENT:
Not Applicable.
RECOMMENDATIONS:
That the City Council approve the attached, proposed ordinance that would authorize the issuance of the city's 2013 GO Refunding Bonds.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Peters, Alternate