City of Fayetteville
File #: 22-2794    Version: 1 Name:
Type: Consent Status: Agenda Ready
File created: 6/6/2022 In control: City Council Regular Meeting
On agenda: 6/13/2022 Final action:
Title: Adoption of Capital Project Ordinance Amendment 2022-65 for Parks and Recreation, 2nd Tranche, General Obligation Bond Issuance Cost
Attachments: 1. CPOA 2022-65 Parks and Rec Bond Issuance
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TO:                                            Mayor and Members of City Council

THRU:                      Douglas J. Hewett, ICMA-CM - City Manager

 

FROM:                     Jay C. Toland, CMA - Assistant City Manager/CFO

 

DATE:                      June 13, 2022

 

RE:

Title

Adoption of Capital Project Ordinance Amendment 2022-65 for Parks and Recreation, 2nd Tranche, General Obligation Bond Issuance Cost                     

end

 

COUNCIL DISTRICT(S):                      

Council District(s)

All                     

 

 

b

Relationship To Strategic Plan:

Goal 4 - The City of Fayetteville will be a highly desirable place to live, work, and recreate with thriving neighborhoods and a high quality of life for its citizens.

 

 

Executive Summary:

Council is asked to adopt Capital Project Ordinance Amendment 2022-65 to appropriate $335,006 for bond issuance costs associated with the sale of the 2nd tranche of General Obligation bonds.  The funding source for this appropriation is bond premium received from the sale of the previously referenced bonds.

 

 

Background: 

On May 3rd, 2022, the final tranche of the Parks and Recreation General Obligation bonds closed.  The total was $19 Million.

 

This amendment appropriates $335,006 to cover final bills related to issuing the debt on behalf of the City. 

 

 

Issues/Analysis: 

The sale of the bonds resulted in a premium of approximately $1.4 Million.  A premium received on a bond is an excess of funds on the sale of the bonds beyond the face value of the bonds.  Previous council action has provided direction for the use of the majority of these funds.

 

 

Budget Impact: 

There is no impact to the General Fund as it is proposed that the additional appropriation for the bonds issuance costs be funded from premium payments from the sale of previously referenced bonds.

 

 

Options: 

1.  Adopt Capital Project Ordinance 2022-65 to provide funding for the estimated bond issuance costs from the premium payments.

 

2.  Do not Adopt the Capital Project Ordinance Amendment as presented, and provide guidance to staff as to a different source of funding for the amendment.  

 

 

Recommended Action: 

Staff recommends that Council move to adopt Capital Project Ordinance Amendment 2022-65 as presented.

 

 

Attachments:

Capital Project Ordinance Amendment 2022-65