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06/06/1994-CC-Agenda Packet-Work SessionCITY COUNCIL twVORIVSHOP AGENDA MONDAY, JUNE 6, 1994 291 BOLIVAR STREET, CITY HALL CONFERENCE ROOM 6:00 P.M. 1. Call Meeting To Order 2. Discussion Regarding Capital Improvements Program Financing 3. Adjournment 6/3/94 10:00 a.m. Date &Time Posted CITY OF SANGER P. O. BOX 578 SANGER, TEXAS 76266 MEMORANDUM #2515 TO: Honorable Mayor & Members of the CitV Council FROM: John Hamilton, City Administrator DATE. June 3, 1994 SUBJECT: Capital Improvements Financing Financial Advisor Dan Almon has proposed another alternative in order to finance the proposed street and library projects. The premise of the plan involves early retirement of the 1986 Street Improvements Certificates of Obligation issue which is Baa rated by Moody's, and the issuance of new unrated Certificates of Obligation that should be fixed at less than 7% for a fifteen year term. To give you an idea of the annual debt service required, the following chart is presented: - Certificates of Obligation Annual Debt Service 7% 15 Year $1.5M $161,179 $1.6M $172,577 $1.7M $183,365 $1.8M $194,141 $1.9M $204,929 $2.0M $215,719 la Year $208,980 $222,912 $2369844 $250,776 $26 4,636 $278,640 The City's Bank Depository, GNB, has been contacted and is willing to work with the City in any way possible to help in the debt structure of this Capital Improvement Program. Another meeting with Mr. Almon is scheduled for 3 p.m., Monday, and a complete review of his proposal will be presented at Monday evening's workshop. JH:es