Sponsor: Finance
Title
title
General Obligation Capital Improvement Plan Refunding Bonds, Series 2020A & Series 2020B - Award Sale
end
Recommendation
recommendation
Award the sale of approximately $19,475,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020A and approximately $28,030,000 Taxable General Obligation Refunding Bonds, Series 2020B.
body
Background
background
Bids for the purchase of the County’s General Obligation Capital Improvement Plan (CIP) Refunding Bonds, Series 2020A and the Taxable General Obligation CIP Refunding Bonds, Series 2020B were accepted from interested investors on Monday, November 16, 2020.
The Series A bonds will be used to refund outstanding maturities of the County’s General Obligation CIP Bonds, Series 2011A, and General Obligation CIP Bonds, Series 2013A in order to realize projected interest savings of approximately $2,400,000 over the remaining life of the debt.
The Series B bonds will be used to refund outstanding maturities of the County’s General Obligation CIP Bonds, Series2012A, the Taxable General Obligation CIP Bonds, Series 2013B, the Taxable General Obligation CIP Bonds, Series 2014B (TCAAP), and the General Obligation Library Bonds, Series 2014C. in order to realize projected interest savings of approximately $2,900,000 over the remaining life of the debt.
Total combined future savings from both of the Series A and Series was projected to be approximately $5,300,000 over the life of the refunding bonds.
The County’s financial advisor, Baker Tilly Municipal Advisors, LLC, is presenting the bid results to the County Board at 9:00 a.m. on Tuesday, November 17, 2020, at which time the County Board will consider awarding the sale of the bonds to the lowest bidder.
If the bond sale is awarded, bond counsel from Kennedy & Graven will complete the bond documents including the final resolution, which will also be reviewed by the County’s financial advisor.
end
County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
This action by itself does not have a measurable racial equity impact, as the action is just one step in the process required by the County Charter to issue bonds. The County issues bonds to finance numerous capital improvement projects, each of which provides programs and services to the community. The racial equity impact should be considered by the County departments during the development of the associated programs and services for each capital project.
Community Participation Level and Impact
Ramsey County issues bonds to finance capital improvements identified in its annual capital improvement plan which is developed with public participation through the Capital Improvement Program Citizen’s Advisory Committee (CIPAC), an advisory committee composed of up to 14 residents, appointed by the County Board, to assure public participation in the decision-making process. CIPAC reviews, rates and recommends capital improvement projects. The County Board held public hearings as part of the original Bond Ordinance processes to afford the public an opportunity to comment on each proposed project. Direct community participation should be incorporated through the County departments in the development of the programs and services associated with each capital project.
☒ Inform ☒ Consult ☒ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The sale of the refunding bonds will allow Ramsey County to achieve a reduction in interest costs. Debt Service savings over the life of the bonds was projected, before the bond sale, at $5,300,000.
Required debt service is included in the approved 2020-2021 budget.
County Manager Comments
County Board action to award the bonds to the underwriter bidding the lowest interest cost is required to complete the sale of the bonds.
Last Previous Action
On October 20, 2020, the County Board authorized the issuance of approximately $28,030,000 Taxable General Obligation Refunding Bonds, Series 2020B (Resolution B2020-207)
On October 20, 2020, the County Board authorized the issuance of approximately $19,475,000 General Obligation Refunding Bonds, Series 2020A (Resolution B2020-207)
On July 22, 2014, the County Board authorized the issuance of $9,500,000 Taxable General Obligation CIP Bonds, Series 2014B (Resolution 2014-239).
On July 22, 2014, the County Board authorized the issuance of $3,300,000 General Obligation Library Bonds, Series 2014C (Resolution 2014-240).
On June 4, 2013, the County Board authorized the issuance of $22,700,000 General Obligation CIP Bonds, Series 2013A (Resolution 2013-163).
On June 4, 2013, the County Board authorized the issuance of $12,000,000 Taxable General Obligation CIP Bonds, Series 2013B (Resolution 2013-164).
On June 5, 2012, the County Board authorized the issuance of $18,500,000 General Obligation CIP bonds, Series 2012A (Resolution 2012-167).
On May 24, 2011, the County Board authorized the issuance of $18,500,000 General Obligation CIP bonds, Series 2011A (Resolution 2011-182).
Attachments
1. Pre-Sale Summary - Series 2020AB
2. Proposed Schedule of Events - 2020 Refunding Bond Sale
3. Resolution Authorizing the sale of Series 2020A Bonds
4. Resolution Authorizing the sale of Series 2020B Bonds