Legislation Details

File #: 20-8551    Version: 1 Name: ORD - 2024 LOBs Final Numbers/Premium and Issuance Cost
Type: Ordinance Status: First Reading
File created: 5/7/2024 In control: City Council
On agenda: 6/4/2024 Final action:
Title: Ordinance to Amend the Streets and Sidewalks Capital Projects Fund, the Parks and Recreation Capital Projects Fund, the Storm Water Capital Projects Fund, and the Debt Service Fund for the Limited Obligation Bonds, Series 2024 (Net Budget Impact $11,455,822)
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Title

Ordinance to Amend the Streets and Sidewalks Capital Projects Fund, the Parks and Recreation Capital Projects Fund, the Storm Water Capital Projects Fund, and the Debt Service Fund for the Limited Obligation Bonds, Series 2024   (Net Budget Impact $11,455,822)

 

Body

LEGISLATIVE INTENT/PURPOSE:

 

On April 24, 2024, the City of Wilmington issued Limited Obligation Bonds, Series 2024 for street, streetscape, and Riverwalk improvements, the acquisition of two blocks of riverfront property, the repair of a bulkhead wall, parks and recreation improvements, the refinancing of a portion of the City’s installment payment obligations related to the Limited Obligation Bonds, Series 2014A, maturing on and after June 1, 2025, and to pay the costs related to the execution, sale, and delivery of the 2024 Bonds.

 

The City closed this issuance on May 15, 2024.

 

The True Interest Cost for the Series 2024 was 3.64%. The refunding portion of the transaction resulted in a net present value debt service savings of $393,526 over the life of the bonds.  This represents a 3.56% savings of principal refunded compared to the Local Government Commission 3% minimum savings requirement.

 

This ordinance appropriates the premium, the cost of issuance, and payment to redeem the outstanding bonds, and the funds impacted are the Streets and Sidewalks Capital Projects Fund, the Parks and Recreation Capital Projects Fund, the Storm Water Capital Projects Fund, and the Debt Service Fund.

 

THEREFORE, BE IT ORDAINED:

 

THAT, the City Council authorizes the consolidations and other actions necessary to comply with GASB pronouncements that would affect financial reporting compliance; and,

 

THAT, the following appropriations are hereby made to the Streets and Sidewalks Capital Projects Fund, the Parks and Recreation Capital Projects Fund, the Storm Water Capital Projects Fund, and the Debt Service Fund, and that the following revenues are available to meet these appropriations:

                                                                                                         

STREETS AND SIDEWALKS CAPITAL PROJECTS FUND

[2CRRF0810 Riverwalk North Marina]

 

Appropriation

Issuance Cost

2CRRF0810-IMPSTSSW-CPCONSTR-CPDEBT                                       $268,086

                     

Revenue                                                                                                                                                   

Premium on Issuance of LOBs, Series 2024

2CRRF0810-8DTINSTOBL-8INSTALFIN-IFISSUEPRM             $2,197,598

 

 

Installment Financing

2CRRF0810-8DTINSTOBL-8INSTALFIN-INSTFINCG            ( $1,929,512 )

 

 

PARKS AND RECREATION CAPITAL PROJECTS FUND

[3CRPK1863 Soccer Complex]

 

Appropriation

Issuance Cost

3CRPK1863-IMPSTSSW-CPCONSTR-CPDEBT                                       $12,473

                     

Revenue                                                                                                                                                   

Premium on Issuance of LOBs, Series 2024

3CRPK1863-8DTINSTOBL-8INSTALFIN-IFISSUEPRM             $12,473

 

 

Refunding Series 2024 LOBS

DEBT SERVICE FUND

Appropriation

Issuance Cost                                                                                                                                                    

15091600 580080                                                                                                                                                    $    142,710

Payment to redeem LOBs, Series 2014                                                                         

15091700 580054                                                                                                                                                   $10,961,846                                                               

 

Revenue

Issuance of Refunding LOBs, Series 2014                                                               

15009311 331021                                                                                                                                                    $10,224,896

Premium on Issuance of LOBs, Series 2014                                                               

15009311 331022                                                                                                                                                    $     879,660

                     

 

STORM WATER FUND

Appropriation

Issuance Cost

50091600 580080                                                                                                                                                    $            909                              

Payment to redeem LOBs, Series 2014                                                                                    

50091700 580054                                                                                                                                                     $       69,798

 

Revenue

Issuance of Refunding LOBs, Series 2014

50009311 331021                                                                                                                                                    $        65,105

Premium on Issuance of LOBs, Series 2014                                                                $          5,602

50009311 331022