HomeMy Public PortalAboutAB 07-208 TRAN amend RS (2)
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, ID 83638
Number AB 07-208
Meeting Date November 8, 2007
AGENDA ITEM INFORMATION
Approvals: Department/ Initials Remarks
SUBJECT:
Committee/Individual (Originator/
Support)
Tax Revenue Anticipation Note (TRAN),
Mayor / Council
second part of three part plan to satisfy
City Manager
Wausau judgment
Community Development
Treasurer FQ Originator
Acting Clerk
Police Department
Public Works
Golf Operations
Parks & Recreation
Airport
COST IMPACT: $696,373
Library
FUNDING SOURCE: New Property Tax – 3%,
City Attorney
Foregone, and New Construction and Annexation
for FY’08 for purposes of Idaho Code Section 50-
1006
Grant Coordinator
TIMELINE: November 14, 2007
Other: ( )
SUMMARY STATEMENT:
The enclosed resolution 07-15, will allow the City to issue tax anticipation notes to fund a portion of the
Wausau judgments in the amount of the new FY’08 property taxes ($696,373) less costs of the
transaction. The note will be repaid from tax revenues, but for security purposes under state law there
must be "anticipated" and pledged sufficient revenues that the amount of the note does not exceed 75% of
such revenues. To accomplish this an additional $235,000 will be anticipated and pledged by the City.
The Note will have an interest rate of 4.50% based on an agreement with U.S. Bank and will be issued to
the Bank. The Note will have a maturity date for repayment of August 1, 2008 to allow for final receipt of
the levy amounts in the January and July payments to the City of the tax levy. State law also requires that
the said tax revenues pledged and anticipated be deposited to the note redemption fund until they equal
the amount of the Note. Adoption of the resolution will allow for the issuance of the note and the execution
of the relevant documents. It is expected that closing of the Note will occur on or about November 14.
RECOMMENDED ACTION:
(1) Adopt Resolution 07-15, and authorize Mayor to sign all necessary documents, (2) authorize
the City to issue a check to the court.
RECORD OF COUNCIL ACTION
Meeting Date ACTION