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HomeMy WebLinkAboutFIN 2018-07-05 Item 2E - Public Safety Plan - Financing Public Works Shops UpdateCity f Tukwila INFORMATIONALAllan Ekberg, Mayor U��U�n�������0� n�n�~n�n��n�x�«u�����u�m TO: Finance Committee FROM: Peggy McCarthy, Finance Director CC: Mayor Ekber DATE: June 25, 2018 SUBJECT: Finance the Public Works Shops portion of the Public Safety Plan ISSUE Review the Schedule of Events for issuance of up to $20 million limited tax general obligation bonds for the acquisition of property and construction of improvements for new Public Works shops, pursuant the Public Safety Plan. BACKGROUND On December 4, 2017, the City Council approved bond ordinance 2559 for the issuance of up to $20 million of limited tax general obligation (LTGO) bonds for financing the acquisition of property for the Public Works shops and to pay for improvements and associated costs. In February 2018 through May 2018, the City Council Finance Committee reviewed and considered several financing options and pjectscopoa|ba/nativeoforthePub|icSahah/P|an.indudingthePub|ioVVorkaahopa.0nJune 11, 2018, a City Council workshop was held to discuss the selected financing options and scope a|ternahves, and at the regular City Council meeting on June 18, 2018, the City Council authorized the administration to move forward with the Public Safety Plan scenario referred to as D-20. Under this scenario, $30 million is appropriated for Public Works shops property acquisition and impruvementa, with financing to be accomplished through limited tax general obligation bonds with maximum terms of 20 years. DISCUSSION The City is in the process of acquiring three parcels to site the new Public Works Shops. Through May 2018, $7.4 million has been expended on behalf of the Public Works shop project,indudingo February deposit to the court under the eminent domain laws. On May 25, 2018. the court entered an order adjudicating the issue of public use and necessity allowing property acquisition to move forward. The bond proceeds will be used to complete the property purchases, reimburse the City for project expenditures previously innurred, and construct Public Works shops improvements. The bond sale isscheduled for July 31.2018and the bond closing for August 14.2O18. RECOMMENDATION For information only ATTACHMENTS 47 49 pfm m City of Tukwila, Washington Limited Tax General Obligation Bonds, 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SM TW T F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 City Finance Director/City Manager/Staif: City Pacifica Law Group LLP (Bond Counsel)' BC PFM Financial Advisors LLC (Financial Advisor): PFM References to "All Parties" includes City, BC, and PFM Date Event Responsibility 12/4 • City Council approves Bond Ordinance 6;2-13 • FOMC Meeting 6/15 • Current draft of POS distributed 6/21 • Comments provided on draft POS 6/27 • Revised draft POS distributed 6/28 • Draft rating materials distributed 6/30 • Publication of the Citys 2017 Audited Financial Statements 7/2 • Comments provided on draft POS 7/3 • Commerits provided on draft rating materials 7/4 • Independence Day [7/6] • Rating agency prep caII/meeting 7/6 • Revised draft POS distributed By 7/9 • Final rating materials distributed [7Y10] • Bond rating agency caII [7Y13] • Due diligence caII to review POS 7/16 • Final comments provided on POS 7/19 • POS distributed for final sign -off 7/23 • Final sign -off on POS provided By 7/23 • Receive bond rating 7/24 • POS posted PFM [7/31] • Bond sale All Parties 7%31'8/1 • FC)MCMeebng 8/3 • OS distributed for final sign -off PFM 8/7 • Final sign-off/OS posted All Parties 8/14 • Bond Closing All Parties PFM All Parties PFM PFM City City City/PFM PFM PFM City/PFM All Parties All Parties PFM All Parties 49