HomeMy WebLinkAbout4.08 Staff Out of State Travel CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 8, 1988
SUBJECT Authorization for Out of State Travel for City
Manager, Assistant to the City Manager and City
Attorney, February 17-19, 1988, related to refinancing
1985 Certificates of Participation
EXHIBITS ATTACHED None
RECOMMENDATI N Authorize out of state travel
FINANCIAL STATEMENT: Estimated travel costs are $3, 000. Sufficient funds
are budgeted in the City Manager ' s Department Account.
DESCRIPTION The City Council has previously authorized Staff to do
the necessary work to refinance the 1985 Civic Center Certificates of
Participation, as well as to provide new monies to finance the total cost of
the Civic Center project. The City Council previously secured the services
of Jones Hall Hill & White as Bond Counsel and Rauscher Pierce Refsnes as
the City' s Underwriter for this project.
The purpose of securing the services of Bond Counsel and the Underwriter
early on was to have all of the work done that was necessary to undertake a
refinancing of the 1985 COP' s, so that the City would be in a position to
take advantage of the lowest market interest rates .
In order to issue Certificates of Participation, it is necessary for the
City to either get an insurance company to insure the issue and pay a
premium for that insurance, or to have the rating agencies, which are
located in New York City, issue a financial credit rating for the particular
issue.
The City' s Underwriter has indicated that to this date, he has been unable
to find an insurance company willing to provide insurance for this issue.
This necessitates requesting a rating from the bond rating agencies in New
York if the City is to take advantage of the current favorable interest
rates. The Underwriter has proposed that the City request a rating from
Moodys and Standard & Poors rating services to enhance the marketability of
the new Certificates of Participation. In order to improve the City' s
chances of getting a higher financial rating from the rating services and
thus lower the overall cost of the Certificates, the Underwriter and Staff
have worked on a formal presentation to be made to these rating services.
This presentation will include an indepth discussion on the project to be
refinanced, a discussion of the overall economy of the City, the management
of the City, as well as those legal issues related to the operation of the
City and refinancing of the Certificates of Participation.
It is Staff ' s recommendation that the Council authorize this travel for the
purpose of attempting to improve the City' s current BBB+ rating and lowering
the overall interest cost on this issue.
COPIES TO:
ITEM NO. Lt