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Brentwood City Commission Agenda

Meeting Date:	08/12/2019
Resolution 2109 -79 - An Initial Resolution Authorizing the Issuance of up to $15,000,000 in General Obligation Bonds - Series 2019
Submitted by:	Richard Parker, Finance
Department:	Finance

Information

Subject

Resolution 2019-79 - An Initial Resolution authorizing the issuance of General Obligation Public Improvement Bonds, Series 2019, in an amount not to exceed $15,000,000.

Background

The FY 2020 - 2025 Capital Improvements Program and the FY 2020 Annual Operating Budget anticipate the issuance of $13 Million in General Obligation Bonds during FY 2020 to partially fund a new headquarters facility for the Police Department. The accompanying two resolutions are required to be approved by Roll Call Vote to issue these new bonds. Because construction bids have not yet been received, staff is requesting issuance of "up to" $15 Million in bonds to provide flexibility to the City Commission once final pricing is known. Staff will report back to the Commission once bids have been received and funding needs have been determined.

The first of these two resolutions is the Initial Resolution that serves to notify the public of the proposed issuance and identify the legal mechanism that is available under State law to call for a referendum for the approval of the issuance. Assuming no referendum is called, the second (Resolution 2019-80) authorizes the actual bond issue to move forward. The resolution also authorizes the Mayor to formally approve the issue and to accept or reject, on behalf of the City, the competitive bids received from representatives of major bond buyers and syndicates. This approach is consistent with requirements under State law and prior City bond issues.

Please contact the Finance Director if you have questions.

Staff Recommendation

Staff recommends approval of the two accompanying resolutions associated with the issuance of the General Obligation Bonds.

Fiscal Impact

Amount :	$15,000,000
Source of Funds:	Debt Service Fund
Account Number:	211

Fiscal Impact:

Funding is in place in the Debt Service Fund for the City to make the March 2020 interest payment on $13 Million in new General Obligation bonds. If a budget amendment is needed as a result of an increase in the final amount of bonds issued ("up to" $15 Million), staff will seek City Commission approval. Both principal and interest payments would be provided in the FY 2021 budget.

Attachments
Resolution 2019-79
Signed Resolution