(ALL) Adopt Ordinance Appropriating $18,000,000.00 out of the Proceeds from the General Purpose Refunding Bonds, Series 2025 to the Municipal Parking Debt Service Fund to Properly Account for Obligations Being Refunded

Summary

This City Council agenda item involves the adoption of an ordinance to appropriate $18,000,000.00 from the proceeds of the General Purpose Refunding Bonds, Series 2025. The purpose of this appropriation is to properly account for and pay the principal retirement of the parking portion of the General Purpose Refunding and Improvement Bonds, Series 2016. This action is a necessary step following the recent issuance of $60,205,000.00 in refunding bonds, which aimed to achieve debt service savings by refinancing older bonds. The refunding transaction resulted in net present value savings of $3,338,234.00 and is projected to yield average annual debt service savings of approximately $460,000.00 through Fiscal Year 2035. While the initial appropriation ordinance for the Series 2025 bonds allocated all proceeds to the General Debt Service Fund, this ordinance specifically moves $18,000,000.00 to the Municipal Parking Debt Service Fund to correctly allocate the funds for the refunded parking-related debt. The total appropriations for the Series 2025 refunding bonds will remain unchanged, with the funds simply being split between two debt service funds.

Citizen Impact

This ordinance is a financial housekeeping measure related to bond refunding. It ensures proper accounting for debt service payments on parking-related bonds, but does not introduce new taxes or fees for residents. The overall effect is to secure debt service savings for the city.

Confidence

high