Transmittal - 6/25/2014MARINA SCOTT
CITY TREASURE"R
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TO: Salt Lake City Council
Charlie Luke, Chair
FROM: Gordon Hoskins, Finance Director~~ ~~
DATE: June 25, 2014
SUBJECT: Sales and Excise Tax Revenue Bonds, Series 2014B (CIP Projects)
STAFF CONTACT: Marina Scott, City Treasurer 801-535-6565
COUNCIL SPONSOR: Exempt
DOCUMENT TYPE: Briefing/Resolution
RECOMMENDATION: 1) That the City Council on July 15, 2014 hold a discussion in
anticipation of approving a Parameters Resolution on July 29, 2014 for the
aforementioned bond issue; 2) That the City Council on July 15, 2014 adopt a Resolution
Authorizing Public Hearing on August 12, 2014 that will also authorize a Notice of
Public Hearing to be published twice prior to the date set for the public hearing.
BUDGET IMPACT: Based on preliminary estimates and the current interest rate
environment, annual debt service costs would average $758,000 per year for 21 years.
Attached is a preliminary numbers run including estimated sources and uses of funds as
well as debt amortization schedules.
BACKGROUND/DISCUSSION: Proceeds from the Bonds will be used for the purpose
of financing a portion of the cost of the various capital improvement projects. In October
of 2013, the City Council approved Resolution 49 of 2013, allocating CIP funding that
has previously been appropriated by the Council as part of the FY 2013 - 14 budget.
Later, in budget amendment # 2, the City Council approved a number of capital
improvement projects with the intent of financing these projects by issuing sales and
excise tax revenue bonds. The list of the capital improvement projects to be finance by
issuing sales and excise tax revenue bonds is attached.
LOCATION: 451 SOUTH STATE STREET, ROOM 22B, SALT LAKE CITY, UTAH B4111
MAILING ADDRESS: P.O. BOX 1 45462, SALT LAKE CITY, UTAH B4114·5462
TELCPHONE: 001-535·?946 FAX; 0□1·5:J5·60B2
WWW.SLCGOV,C□M
In accordance with provisions of the Local Governm ent Bonding Act, the City is required
to hold a public hearing to receive input from the public with respect to: a) the issuance
of our sales tax revenue bonds; and b) the potential economic impact that the Project will
have on the private sector. The financing team is requesting that the City Council on July
15, 2014 appro ve a motion to set Tuesday, August 12, 2014 as the date to hold the public
hearing. A Notice of Public Hearing is required to be published once a week for two
consecutive weeks, with the first publication being at least 14 days prior to the date set
for the public hearing.
The Parameters Resolution for the above-referenced bond issue will contemplate the
issuance of up to $12 million principal amount of bonds bearing interest at a rate not to
exceed 6% and maturing in not more than 21 years. The Parameters Resolution is
scheduled for adoption on July 29, 2014.
Please use the attached Agenda and Motion language provided by Bond Counsel.
A preliminary debt service schedule for the Bonds is provided with this packet. Also,
draft copies of the Bond Resolution, Tenth Supplemental Trust Indenture, Certificate of
Determination, Preliminary Official Statement, Form of Continuing Disclosure
Agreement, and Official Notice of Sale are attached for your review. Please keep in
mind that these are preliminary drafts and are subject to change.
Attachments
cc: Mike Akerlow, Gina Chamness, Boyd Ferguson, Robin Hutcheson, Joseph Moratalla
Jeff Snelling
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H:\Treas\DansDocs\Council Cover Letters\SETRB Series 20148 (CIP Projects).doc