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City Council Regular Meeting
Resolution for the Issuance of Bonds
Business Meeting: 09/03/2019
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.
The adopted budget for FY 2020 includes bond financing that will fund the following approved capital projects:
Rescue Station Upgrades
Parks & Recreation
Welcome Center Upgrades
Parking Lot Resurfacing
Courthouse Building Upgrades
Stormwater System Upgrades
Danville Public Schools
Street Light Replacement
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.
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.
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