HomeMy Public PortalAboutAB 07-120 LID 3 Status Report
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, ID 83638
Number AB 07-120
Meeting Date July 12, 2007
AGENDA ITEM INFORMATION
Approvals: Department/ Initials Remarks
SUBJECT:
Committee/Individual (Originator/
Support)
LID 3, Status Report
Mayor / Council
City Manager
Airport
City Clerk, Deputy Clerk
Community Development
Grant Coordinator
Golf Operations
Library
Parks
Police Department
COST IMPACT:
Public Works
Recreation
FUNDING SOURCE:
Treasurer FQ/ LS
1993 Bond Issue for LID #3
City Attorney
TIMELINE: July 12, 2007 Council Meeting
Other
SUMMARY STATEMENT:
The LID #3 Bonds will experience a shortfall beginning 2010, per the attached spreadsheet. The
calculations do not include any interest earned on the investment accounts or interest lost due to early
payoff of assessments. We will call bonds again on August 15, and will provide notice to bondholders by
July 15, (30 day notice required) and will provide the requisite budget amendment at the August 9 Council
meeting. We will call $500,000 from LID 3, and consequently, the shortfall will be reduced by
approximately $320,000 in 2013.
The shortfall of LID #3 Bonds is due to (1) failure of the City to call bonds for the first ten years of the
Bond Issue (1993 to 2002)*; (2) WNLW defaulted and the City sold the property, (3) the City has
historically given credit for reserve when property owners pay the assessment, even after the early payoff
time.
. *The failure to call bonds prior to 2002 may be due to the premium the City would have had to pay prior
to 2002:
8/15/94: 103% of face value
8/15/00: 102% of face value
8/15/01: 101% of face value
8/15/02: 100% of face value
RECOMMENDED ACTION:
Authorize staff to (1) notify bondholders of a $500,000 call, August 15, 2007, contingent upon the trustee
receiving the funds, (2) prepare a budget amendment of $500,000 for the August 9 Council meeting, from
the LID #3, LGIP cash investment fund.
RECORD OF COUNCIL ACTION
Meeting Date ACTION