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HomeMy WebLinkAboutIR 6915 i INFORMAL REPORT TO CITY COUNCIL MEMBERS No 6915 �'p 7CgF0 4 coer,�A To the Mayor and Members of the City Council February 21 , 1984 rsxAy� Subject: pRaCPS SAI'E OF GENERAL OBLIGATION BCINDS FOR SANITARY SEWER ,a 73 On February 14, 1984, the Council reviewed the proposed general obligation bond sale for 1983-84. Subsequently, planning has proceded with the City's financial advisors to schedule a bond sale at the earliest possible date prior to April 1, 1984. The plan presented to the Council was for a $55,000,000 bond sale to provide funding for seven capital improvement categories. In examining the total capital improvement requirements of the City, it has been determined that, in addition to the general obligation projects included in the $55,000,000, there exists the need to issue bonds for water and sewer projects prior to June 30, 1984. Since 1982, Water and Sewer projects have been financed by the sale of revenue bonds. Prior to this date sane financing of sanitary sewer projects was by general obligation bonds. The last general obligation bonds for sanitary sewer projects were approved by voters on December 9, 1975, in the amount of $27,500,000. Of this amount, $5,800,000 remains unissued. These funds are required to complete projects already ap- (�� proved by Council. To be consistent with the Council direction to sell ` bonds to cover all expended or obligated funds, the $5,800,000 autho- rized bonds should be sold at this time. Rather than schedule a second general obligation bond sale for the $5,800,000 at the time of the anticipated water and sewer revenue bond sale, the City's financial advisors and the staff concur that the least costly approach would be to include general obligation bonds for sanitary sewer projects in the March sale of general obligation bonds for general capital projects. The addition of the $5,800,000 would have no effect on the tax supported debt service previously presented for the $55,000,000 sale since the debt service on general obligation sanitary sewer bonds is paid from the Water and Sewer Fund. ISSUED BY THE CITY MANAGER - FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS N0.b915 - Page 2 ,IT Ip,�p To the Mayor and Members of the City Council February 21, 1984 vai �rEXP'y Subject: PROPOSED SALE OF GENERAL OBLIGATION BONDS FOR SANITARY SEWER -.,3 PROJECTS Accordingly„ with Council concurrence, the proposed March general obligation bond sale will be structured at $60,800,000 to consist of the following categories: Public Safety $ 7,110,000 Municipal Services 1,100,000 Landfills 3,100,000 Public Events 10,500,000 Library 160,000 Streets 28,230,000 Park & Recreation 4,800,000 Sanitary Sewers 5,800,000 $60,800,000 Should additional information be desired, it will be furnished upon request. /J don Robert L. Herchert City Manager RLH:jcn r ISSUED BY THE CITY MANAGER -- FORT WORTH, TEXAS