TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kacey Duncan, Deputy City Manager
SUBJECT:
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Authorizing the Sale of General Obligation Bonds.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall City Council adopt Resolution No. 2018-7 authorizing the City to issue up to $18,600,000 of general obligation bonds to finance seismic and building systems improvements to the Salem Public Library, and other capital costs?
RECOMMENDATION:
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Adopt Resolution No. 2018-7 authorizing the City to issue up to $18,600,000 of general obligation bonds to finance seismic and building systems improvements to the Salem Public Library, and other capital costs.
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SUMMARY AND BACKGROUND:
On November 7, 2017, Salem voters approved Measure 24-423, authorizing the City to issue up to $18,600,000 of general obligation (GO) bonds to finance library improvements and other capital costs. Improvements allowed in Measure 24-423 include the following:
• Strengthen the Library building and adjacent surface parking lot and parking garage to increase the protection for the public and building in the event of a major earthquake,
• Repair or replace Library building systems, including the roof, windows, plumbing, electrical, entryways, shelving, space remodeling, and air conditioning systems,
• Extend the life of the Library for an additional thirty years.
Any funds remaining would be used to fund other capital costs for the Salem Public Library or the Salem Civic Center campus.
FACTS AND FINDINGS:
Finance is currently working with the City’s municipal advisor, Piper Jaffray & Co., to determine the optimal issuance structure for the GO bonds. If approved, the City will be targeting a March 2018 closing date for the bonds. Based on that timeline, the City expects to levy ad valorem taxes beginning in FY 2018-19 to cover debt service expenses.
David Lacy
Financial Operations Manager
Attachments:
1. Resolution No. 2018-7 Authorizing the Sale of GO Bonds.