Subject:
Title
Request to Set a Public Hearing for Feb. 7, 2022 regarding Issuance of Bonds and Notice of Intent to Adopt an Ordinance
Body
EXPLANATION AND SUMMARY:
Council must hold a public hearing and approve a Notice of Intent to Adopt an Ordinance resolution whenever the Town issues debt. In accordance with the Town’s capital planning process, the Town issues bonds on even numbered years. Council intends to approve $10.8 million in CIP bond funding on Jan. 24, 2022. This issuance will include $1.2 million in vehicle financing for a total of $12 million in bond funding.
The bond proceeds are designated for public parking projects, parks projects, street paving and rebuilding, sidewalk and trail projects, and other miscellaneous improvements to the water and sewer system and general Town facilities.
Davenport and Company, the Town’s financial advisor, has also recommended exploring refunding and refinancing the series 2013 C (2014) Bonds and the series 2015 Green Bonds (2016) to take advantage of lower interest rates. Potentially $4 million of principal can be refunded at a potential interest savings of $134,000. The Town’s financial advisor will make a final recommendation shortly before the bonds go for sale in March. This transaction is only advantageous if interest rates remain at the current level or drop from the current level. This transaction is not included in the total as only new money borrowing requires a public hearing. However, it is important for Council and the public to be aware of the potential additional transaction.
A public hearing allows Vienna residents an opportunity to comment on the bond issuance. The issuance schedule calls for a public hearing on Feb. 7, 2022, and if approved, the bond sale and potential refunding transactions would occur in March 2022 with funding to be received shortly thereafter.
Strategic Plan Initiative: Vienna is a fiscally responsible community.
Board or Commission of Interest: VBA for projects with business impact.
Departmental Recommendation: Recommend setting a public hearing for Feb. 7, 2022.
Finance Recommendation: Recommend setting a public hearing for Feb. 7, 2022.
Purchasing Recommendation: N/A
Town Attorney Recommendation: Based upon the recommendation of the Town’s bond counsel and the state code, the Town Attorney recommends setting a public hearing.
Town Manager's Recommendation: I recommend the Town Council move that a Public Hearing on a Proposed Bond Ordinance authorizing the issuance of general obligation bonds or other forms of indebtedness by the Town of Vienna, Virginia, as presented.
Cost and Financing: $12 million
Account Number: various
Decision Needed by This date: January 24, 2022
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move that a Public Hearing on a Proposed Bond Ordinance authorizing the issuance of general obligation bonds or other forms of indebtedness by the Town of Vienna, Virginia, in an aggregate principal amount up to $12,000,000, in one or more series, which may be tax-exempt or taxable, for the purpose of financing, among other things, public use vehicle replacement and improvements, road improvements, water and sewer system improvements, parking facilities replacement and improvements, real property acquisition, parks and recreational facilities improvements and other public facilities improvements and certain other public improvements described in the Town's capital improvement plan, be scheduled at the regular Council Meeting of Feb. 7, 2022. I further move that the Town Clerk be authorized to advertise a Notice of the Public Hearing and Notice of the Council's Intention to Adopt such Ordinance at such Meeting."
Or
Other action deemed necessary by Council.