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CL- 2169 New Business   Item #:   G.    
City Council Regular Meeting
Meeting Date: 09/03/2019  
Subject:    Resolution for the Issuance of Bonds
From: Michael Adkins

COUNCIL ACTION
Business Meeting:     09/03/2019
SUMMARY
The City's Capital Improvement Plan (CIP) for Fiscal Year 2020 includes bond financing for $4,984,102 in general governmental projects and $8,000,000 in electric system projects.  This Resolution authorizes the sale of bonds to provide funding for the projects adopted by City Council as part of the FY 2020 budget.  The City can also capture debt service savings at this time by refinancing eligible portions of the 2009A and 2010B general obligation bonds.  The bonds to be refinanced have an outstanding balance of $1.5 million and $8.3 million, respectively.
BACKGROUND
 The adopted budget for FY 2020 includes bond financing that will fund the following approved capital projects:
 
DEPARTMENT PROJECT AMOUNT
Fire Equipment $380,000
Admin Rescue Station Upgrades 260,0 00 
Parks & Recreation Welcome Center Upgrades 105,000
Public Works Riverside Drive 50,000
Public Works Elevator Upgrades 275,000
Public Works Roof Replacement 250,000
Public Works Emergency Generator 50,000
Public Works Parking Lot Resurfacing 100,000
Public Works Courthouse Building Upgrades 100,000
Public Works Stormwater System Upgrades 50,000
Danville Public Schools Building Upgrades 3,364,102
Electric Street Light Replacement 1,500,000
Electric Line Rebuilds 2,000,000
Electric Generation Projects 1,500,000
Electric Substation Rebuilds 3,000,000
 
The refinancing of the 2009A and 2010B bonds would produce savings of approximately $65,000 per year over the remaining life of the bonds.  This is a reduction in total debt service of approximately $1,000,000.
 
RECOMMENDATION
It is recommended that City Council approve the attached Resolution to authorize issuance of General Obligation Bonds of the City of Danville, Virginia, in the maximum principal amount not to exceed $13,235,000 for FY 2020 CIP projects, which includes cost of issuance.  The resolution also authorizes the issuance of $10,085,000 of refunding bonds in order to refinance the 2009A and 2010B bonds, which includes cost of issuance. 

Attachments
Resolution

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