RES 1997-0923 - Achieve cost savings on Riverfront redevelopment tax allocation refunding bonds and reduce oustanding principal amount . 4- .
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6441110414 Omaha/Douglas Civic Center
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°R�rFD FEBR�r4y Telefax(402)444-5423
j "j` Louis A.D'Ercole
City of Omaha 0 V, ° h , N t-.•.1%. ,it r Acting Director
Hal Daub,Mayor -
April 8, 1997
Honorable President
• and Members of the City Council,
In 1991 the City issued its Riverfront Redevelopment Project No. 1 Tax Allocation Refunding
Bonds. Series 1991A is a non-taxable issue and the outstanding bonds totalling $4,700,000 carry
an average interest rate of 6.79%. Series 1991B is a taxable issue and the outstanding bonds
totalling$1,120,000 carry an average interest rate of 9.17%. The bonds and interest are being funded
from incremental property taxes on the ConAgra redevelopment project.
The total annual principal and interest payments on both issues is approximately $900,000. The tax
increment payments on the property have totalled$1,290,000 annually, allowing the fund to build
a cash surplus in excess of$1.9 million. The ordinance authorizing the issuance of the bonds
provided that any cash surplus in the fund may be applied to the early redemption of the bonds in
inverse order.
The attached resolution would authorize the Acting Finance Director to take the appropriate steps
under the ordinance to call bonds for redemption from amounts on deposit in the surplus fund. The
action would reduce future interest cost approximately $1.1 million and would reduce the out-
standing term of the bonds.
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A companion ordinance to refund the residual bonds totalling $3,650,000 is also being introduced
to reduce the interest rate on and the term of the remaining outstanding bonds.
We recommend your approval of the attached resolution.
Sincerely, Approved:
_.,,,Z , ,,,s. .4. 4-7
/7-1/ ‘- 1 7/77/q
Louis A. D'Ercole Date Mayor's Office/Title At7-2-- Date
Acting Finance Director
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ti25a CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr Apri 1 8, 19 97
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, pursuant to Ordinance No. 31458 passed March 15, 1988 (the "1988
Ordinance"), as supplemented by Ordinance No. 32267 passed January 8, 1991 (the "1991
Ordinance" and, collectively with the 1988 Ordinance, the "Ordinance"), the City of Omaha,
Nebraska (the "City") issued on January 23, 1991 $5,730,000 aggregate principal amount of
Riverfront Redevelopment Project No. 1 Tax Allocation Refunding Bonds,Series 1991A,of which
$4,700,000 now are outstanding(the "1991A Bonds"),and$1,385,000 aggregate principal amount
of Riverfront Redevelopment Project No. 1 Tax Allocation Refunding Bonds, Series 1991B,of which
$1,120,000 now are outstanding (the "1991B Bonds"and,collectively with the 1991A Bonds,the
"Bonds"), the proceeds of which were applied to the refunding of two earlier series of bonds the
proceeds of which,in turn, were applied to the payment of part of the costs of the acquisition and site
preparation of the City's Riverfront Redevelopment Project; and,
WHEREAS, Section 3.3 and Article IV of the 1991 Ordinance provide for the
redemption at the option of the City on or after November 15, 1996 of the bonds maturing on or after
May 15, 1997,as a whole at any time,or in part from time to time(in inverse order of their maturities
and by lot within a maturity), on any May 15 or November 15,but only upon payment from monies
on credit to the Riverfront Redevelopment Project No. 1 Tax Allocation Surplus Fund(the "Surplus
Fund") created under Section 5.1 of the 1988 Ordinance; and,
WHEREAS,the City Council has been advised that the City will achieve substantial
economic benefit by using monies on deposit in the Surplus Fund to pay the redemption price of a
portion of the outstanding Bonds; and,
WHEREAS, the City Council desires to direct the Acting Finance Director to take
such steps as shall be necessary and appropriate under the Ordinance to cause to be called for
redemption from amounts on deposit in the Surplus Fund$1,560,000 aggregate principal amount of
the 1991A Bonds and$375,000 aggregate principal amount of the 1991B Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
N
, >
4sa CITY OF OMAHA
LEGISLATIVE CHAMBER
A
Omaha,Nebr April 8, 19 97
PAGE 2
Section 1. The City Council of the City hereby finds and determines that it is in the
best interest of the City to achieve interest cost savings on its tax allocation bonded indebtedness and
to reduce the outstanding principal amount of its tax allocation bonded indebtedness by applying
$1,935,000 of the amount now on deposit in the Surplus Fund to the redemption of$1,560,000
aggregate principal amount of the outstanding 1991A Bonds and $375,000 aggregate principal
amount of the outstanding 1991B Bonds.
Section 2. The City Council hereby designates for redemption,and hereby calls for
redemption on May 15, 1997, $1,560,000 aggregate principal amount of the outstanding 1991A
Bonds and$375,000 aggregate principal amount of the outstanding 1991B Bonds (collectively,the
"Refunded Bonds"), which Refunded Bonds shall be selected by the Trustee for the Bonds in
accordance with the applicable provisions of the Ordinance.
Section 3. The Acting Finance Director is hereby authorized and directed to cause
the Trustee for the Bonds (i) to select the Refunded Bonds for redemption as provided by the
Ordinance,(ii)to give notice on or before April 15, 1997 of the call for redemption on May 15, 1997
of the Refunded Bonds by mail to the registered owners thereof and the State Auditor of Public
Accounts, (iii)to withdraw$1,935,000 from the Surplus Fund timely to pay the redemption price of
the Refunded Bonds on May 15, 1997 and(iv)to cancel the Refunded Bonds immediately upon the
redemption thereof, all in accordance with the applicable provisions of the Ordinance.
Section 4. The Mayor,City Clerk and Acting Finance Director(or any officer of the
City authorized to act in the capacity of the Mayor,City Clerk or Acting Finance Director) are hereby
authorized and directed to execute such instruments,certificates and documents as may be necessary
and appropriate and to do all acts and things required herein by the terms and provisions of this
Resolution.
APPROVED AS TO FORM:
ASSIS A ITY ORNEY D TE
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. .By
Councilmember
Adopted APR — 8 1997
City Clerk
Approve.}i //%/Mayor
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