Subject:
Title
Request to set a public hearing for issuance of bonds and notice of intent to adopt an ordinance.
Body
EXPLANATION AND SUMMARY:
Prior to issuing 2020 general obligation bonds in September to support the approved CIP, the Town intends to issue a bond anticipation note to fund CIP items needed before the fall.
Council most hold a public hearing and approve a Notice of Intent to Adopt an Ordinance resolution whenever the Town issues debt. Council approved $28.2 million in CIP bond funding on October 21, 2019. Finance staff recommends issuing a short-term approximately $6 million Bond Anticipation Note (BAN) now and the full amount of $28.2 million in 20-year bonds in September. Those bond proceeds will repay the outstanding balance of the BAN.
The amount noted in the resolution is $30 million, which provides Council with flexibility should an additional projects be identified between now and September. This includes $6 million in advance funding for immediate projects including Fairfax sewer capital, equipment, and a potential real estate acquisition. The remaining bond proceeds are allocated for the new police station, public parking projects, parks projects, and other miscellaneous improvements to the water and sewer system and general Town infrastructure.
A public hearing allows Vienna residents an opportunity to comment on the bond anticipation note and bond issuances. The schedule calls for a public hearing on December 9, 2019 and, if approved, the BAN sale would occur in December with funding to be received shortly thereafter.
Departmental Recommendation: Recommend setting the public hearing.
Finance Recommendation: Recommend setting the public hearing.
Purchasing Recommendation: N/A
Town Attorney Recommendation: Town Council must hold a public hearing prior to issuance of bonds, and Town Council may set the public hearing in its discretion.
Town Manager's Recommendation: I recommend the Town Council set a public heari...
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