HomeMy WebLinkAbout1060 Purchase & Reitrement of Bonds BILL NO. 2011-008 ORDINANCE NO. ICjI�L
AN ORDINANCE AUTHORIZING THE PURCHASE AND RETIREMENT OF CERTAIN
BONDS AND CONFIRMATION OF THE PURCHASE PRICE OF SUCH BONDS AS
TIF REIMBURSABLE PROJECT COSTS UNDER THE L-385 LEVEE
REDEVELOPMENT PLAN, AS AMENDED, AND AUTH�RIZING OTHER
DOCUMENTS AND ACTIONS RELATED THERETO
WHEREAS, The Industrial Development Authority of the City of Riverside,
Missouri (the "Authority"), at the request of the City, issued its Industrial Development
Revenue Bonds (Riverside Horizons Infrastructure Project — City of Riverside, Missouri),
Series 2007 in the principal amount of $40,265,000 (the "Bonds").
WHEREAS, the Bonds consisted of a Series A in the principal amount of
$30,265,000 and a Series B in the principal amount of $10,000,000.
WHEREAS, the Bonds are backed by an annual appropriations pledge of the
City and the City is currently paying all debt service on the Bonds.
WHEREAS, the Bonds are currently trading at a discount and the Finance Officer
has identified an opportunity for the City to purchase $2,000,000 principal amount of the
Bonds for a cost not greater than $1,800,000 plus accrued interest (the "Discounted
Bonds").
WHEREAS, the City is considering this purchase due to the costs savings to be
generated due to the discount.
WHEREAS, it would be to the benefit of the City and the other taxing districts for
the City to purchase the Discounted Bonds and to be reimbursed for the cost of the
Discounted Bonds from tax increment financing revenues available under the L-385
Levee Redevelopment Plan, as amended, thereby resulting is a saving of tax increment
financing revenues.
WHEREAS, it is in the best interest of the City of Riverside, Missouri, its
residents and the other taxing jurisdictions operating within the City for the City to
purchase the Discounted Bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF
THE CITY OF RIVERSIDE, MISSOURI AS FOLLOWS:
SECTION 1— APPROVAL OF PURCHASE. The City approves the purchase of
the Discounted Bonds and authorizes its officers and agents, including the City
Administrator and the Finance Officer, to take all actions and execute all documents to
purchase the Discounted Bonds.
SECTI�N 2— RATIFICATION OF ACTIONS. All actions of the officers and
agents of the City taken prior to the passage of this Ordinance to effectuate the
purchase of the Discounted Bonds are hereby ratified and confirmed.
SECTION 3— TIF REIMBURSABLE PROJECT COST. The City is taking such
actions due to the cost savings generated by the discount. It is not the intent of the City
to pay, with no expectation of reimbursement, the purchase price of the Discounted
Bonds. The City's purchase of the Discounted Bonds and its reimbursement of the
purchase price thereof from tax increment financing revenues will result in a savings to
the taxing districts in the amount of the discount. The cost of purchasing the
Discounted Bonds are hereby confirmed as TIF Reimbursable Project Cost under the L- '
385 Levee Redevelopment Plan, as amended.
SECTION 4— AUTHORITY GRANTED. The officers and agents of the City are
hereby authorized to execute and deliver of all documents and perForm all actions
necessary or desirable to effectuate the intent of this Ordinance.
SECTION 5— EFFECTIVE DATE. This ordinance shall take effect immediately.
BE IT REMEMBERED that the above was read two times by heading only,
passed and approved by a majority of the Board of Aldermen and APPROVED by the
Mayor of the City of Riverside, Missouri, this 1S' day of March, 2011.
1
/ �
athleen L. Rose, Mayor
ATTEST:
, � � l�
°;�t_���
Robin Littrell, City Clerk
Appro as to Form:
�' � -
- an ho' pson, City Attorney
CITY OF
�"���sea.r'''�M�SSt�u�l '
2950 NW Vivion Road
Riverside, Missouri 54150
MEMO DATE: 2-24-2oi1
AGENDADATE: o3-oi-2oii
TO: Mayor & Board of Aldermen
FROM: rinance Director, Donna Resz
TITI..E: Purchase of a Series 200� A& B Bonds
BACKGROUND:
Stifel and Nicholas notified me that our bonds were trading at a discount. In other words, we
could purchase and retire them for less than face value.
Summary: Face Value $a,000,000
Purchase Price $i,88o,000
Savings on Principal � i2o,000
In addition, savings will be realized in the years ahead with reduced annual interest expenditures
of $ioo,000.
FINANCE OFFICE AND SUDGET BACKGROUND:
Not Applicable.
CONSEQUENT ACTION:
Not Applicable.
REVIEWED BY AND RECOMMENDATION:
This proposal was reviewed and recommended by the city administrator and finance
director.