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Approve Project Ordinance Amendment to Recognize Limited Obligation Financing Proceeds.
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Staff:
Department:
Amy Oland, Director
Business Management Department
Overview: The Town recently completed the issuance of $51.526 million of limited obligation bonds (LOBS) for the East Rosemary Parking Deck project ($34.039 million), Blue Hill District Phase II - Elliott Road Reconstruction project ($5.44 million), and the refunding of the Series 2012 LOBS and Series 2015 installment purchase contracts ($12.047 million). In order for these funds to be available to spend on the identified capital projects, Council must enact the budget and project ordinance amendments recognizing receipt of these funds.
Recommendation(s):
That the Council:
* Enact the attached budget ordinance amendment to adjust the Debt Service Fund; and
* Enact the attached project ordinance amendment to amend the budget for the 2021 Limited Obligation Bonds Fund.
Key Issues:
On August 12, 2021, the Town closed on the issuance of $51.526 million of limited obligation bonds (LOBS). The total amount of the proceeds, including a bond premium, is $58,241,903. $39,000,000 is for the East Rosemary Parking Deck project, $6,480,000 is for the Blue Hill District Phase II - Elliott Road Reconstruction project, $12,241,044 is to pay off the Series 2012 LOBS and 2015 installment purchase contract, and $520,859 is to pay costs associated with the financing.
Enactment of the attached budget ordinance amendment would return the $4,385,000 that was borrowed from the Debt Management fund balance in June 2021 to provide the necessary funding for initial project expenditures that were incurred before the Town closed on the LOBS and would recognize and appropriate the LOBS proceeds dedicated to paying off the Series 2012 LOBS and 2015 installment purchase contract.
Enactment of the attached project ordinance amendment would recognize and appropriate the LOBS proceeds and premium for the East Rosemary ...
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