4.1. SR 09-24-2001River
Item ~ 4.1.
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance Director
DATE:
September 24, 2001
SUBJECT: Award Sale of $3,590,000 General Obligation Water Revenue
Bond Series 2001A
It is anticipated that the bond sale that was originally scheduled for last Monday will be held
this Monday. The current proposal is to receive bids at 1:00 p.m. on Monday; however, since
the market is still unstable, the issue will be pulled if market conditions do not look favorable.
Moody's Investors Service has reaffirmed the City's A3 rating with a positive outlook. The
main point of discussion with Moody's revolved around the school district's current debt load
and the potential for additional school debt in the very near future. So even though the city
has continued to see increases and diversification in its market value and fund balances are
healthy and improving, the overlapping debt from the school will continue to be a rating
concern for Moody's.
Assuming the bond sale goes as planned, Rusty Fifield from Ehlers will be at the meeting to
present the results. The resolution awarding the sale of the bond issue will be provided to the
Council at Monday's meeting.
Action Requested
The City Council is asked to award the sale of $3,590,000 General Obligation Water Revenue
Bond Series 200lA.
s:~council~2001 abondsale.doc