HomeMy WebLinkAbout6.2 Temporary Loan to Dublin Information (o1O3
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: - December 1$, 19$5
SUBJECT Temporary Loan from City of Dublin to-Dublin
Information, Inc .
EXHIBITS ATTACHED None
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RECOMMENDATI Authorize a temporary loan in the amount of $1, 000,000
from the City' s Street Improvement Reserve to Dublin
Information, Inc .
FINANCIAL STATEMENT: The City would be restricted from using the $1 , 000,000
until the Certificates of Participation have been paid
off . All interest proceeds from the investment of the
$1 ,000, 000 would be paid to the General Fund during
the term of the Certificates of Participation. The
loan of these reserves to Dublin Information, Inc . ,
will improve the City' s ability to obtain the most
competitive interest rate on the Certificates of
Participation.
DESCRIPTION Pursuant to discussions between Staff and the City' s
Bond Counsel , Staff has determined that it would be advantageous for the
City to earmark $1 , 000, 000 of its present Street Improvement Reserve as an
emergency interest and principal reserve for the issuance of the
Certificates of Participation related to the acquisition and construction of •
a civic center complex. It is standard practice to include such a reserve
as part of the Certificates of Participation issue . However, this increases
the cost of issuance of the Certificates . If the City sets up a reserve to
serve the same purpose outside of the Certificates of Participation issue ,
the cost of issuance to the City is lower, while still providing the City
with a good marketing position.
In order to accomplish the setting up of such a reserve , it is recommended
that the City Council authorize a temporary loan in the amount of $1 , 000, 000
from the City ' s Street Improvement Reserve to Dublin Information, Inc . The
$1 , 000 ,000 would be repaid to the City upon the retiring of the
Certificates . The City could not spend any of the reserve until the
Certificates had been paid off.
During the term of the Certificates , all interest from investment of the
$1,000 , 000 will be paid to the City' s General Fund.
COPIES TO:
ITEM NO. 0,