Subject:
Title
Request to Set a Public Hearing for Feb. 7, 2022 regarding Issuance of Bonds and Notice of Intent to Adopt an Ordinance
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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 proj...
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