AGENDA MEMORANDUM

Meeting Date:           July 23, 2007

From:                          Bill Pfeilsticker, Finance Director

Subject:                      Resolutions (2) authorizing the issuance of Electric and Utility System Revenue Bonds Series 2007A for acquisition and construction of improvements of the system and Series 2007B to replenish revenues spent for city purposes.

Staff Recommendation:

All documents were reviewed by the Financing Team consisting of: Interim City Manager, Finance Director and staff, Financial Advisor, City Attorney, Bond Counsel, Disclosure Counsel, and Department Heads.  The Financing Team recommends adoption of the resolutions as presented.

Analysis:

The Resolutions authorize issuance of the following bonds for the described purposes:

Electric System Revenue Bonds Series 2007A (tax exempt) not to exceed $12,280,000, Series 2007B (taxable) not to exceed $12,000,000 the resolution to finance the acquisition and construction of improvements to the city's electric system and to replenish electric revenues spent for city purposes

Utility System Revenue Bonds Series 2007A (tax exempt) not to exceed $24,520,000 andSeries 2007B (taxable) not to exceed $1,200,000 to finance the acquisition and construction of improvements to the city's gas system, water system and sewer system and to refund the city’s Utility System Subordinated Revenue Bond Anticipation Note, Series 2006A and the city’s Utility System Subordinated Revenue Bond Anticipation Note, Series 2006B to replenish utility system revenues spent for city purposes

Options:

1.  Approve the Resolutions as presented.

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Normal costs incurred with bond issuance which are reimburseable from bond proceeds.

Submission Date and Time:    7/19/2007 10:50 AM7/19/2007 10:38 AM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________