FIN 2017-06-06 COMPLETE AGENDA PACKET

Browse Search

COY Of Tukwila Allan Ekberg, Mayor T-T, 171-1 H I M FROM: Peggy McCarthy, Finance Director CC. Mayor Ekberg DATE: May 31, 2017 SUBJECT: Approve Ordinance for the 2017 LTGO Bond Sale for Residential Street Projects ISSUE Approve an ordinance authorizing the sale of up to $8.8 million in limited tax general obligation bonds for the 42nd Ave S Phase III project and the 1d Ave S project. BACKGRO11111AD The 2017-2018 capital funding plan was discussed at the April 18 1h Finance Committee meeting. Part of the plan calls for the sale of bonds to finance the City's share of two residential street projects — the 42 nd Ave S, Phase 111, project and the 531d Ave S project. Bonding for these two projects is estimated at $6.4 million for the 4211'J Ave S Phase III project and $2 million for the 53 d Ave S, project. The annual debt service for thiis bond issue has been budgeted at $672 thousand beginning in 2018 (CIP page XXVI). DISCUSSION The projects, the associated bond sale, and the debt service costs were considered during the budget process and are reflected in the 2017-2018 Biennial Budget and the 2017-2022 Capital Improvement Program Funding from the bond sale will allow these projects to move forward for the benefit of Tukwila residents and other users of these residential streets. FINANCIAL IMPACT The bond saie is projected to yield $8.4 miillion in proceeds for project funding with the remaining $400,000 available to cover costs of issuance and any effects of a discount bid (if the lowest interest cost bid contains a discount bond structure). The bond sale is scheduled for the week of July 10111 with closing expected the last week of July. RECOMMENDATION The Council is being asked to approve the ordinance authorizing the sale of up to $8.8 million in limited general obligation bonds and consider this item at the June 12, 2017 Committee of the Whole Meeting and subsequent June 19, 2017 Regular Meeting. PFM Overview 9