Over the years, the City has issued sewer bonds for a variety of sewer utility purposes that were purchased by the Nevada State Revolving Fund (SRF), portions of which remain outstanding.  Specifically, bond issuances 2000, 2001, 2002, 2003, 2005, 2005B, 2006, and 2009 have a combined amount of principal currently outstanding which total $27,099,969.98.

In accordance with current SRF bond provisions and requirements, the Nevada State Treasurer has consented to allow the City of Sparks to refinance all of the City's outstanding bonds that are currently held by the Nevada SRF, by issuing a single refunding bond (Series 2016B) with a par amount of $27,099,969.98 that will also be purchased by the Nevada SRF, but at currently lower interest rates compared to those of previous contracts.

Due to the timing of setting the interest rates and aquiring all the necessary documentation, it was necessary to seek approval of the attached Ordinance as if an emergency exists which requires a super-majority approval of the Ordinance.  The attached Ordinance will authorize the Financial Services Director to execute a new contract with the State of Nevada to issue refunding bond Series 2016B to refinance all of the City's outstanding sewer bonds through the Nevada State Revolving Fund.

This action is expected to result in significant debt service savings over the remaining life of the outstanding sewer debt by allowing the City to take advantage of currently low interest rates.  The new refunding bond will have the same principal maturity schedule as the previously issued debt (with final maturity in the year 2029), and the estimated present value of savings is expected to exceed $2.0M over the life of the debt.  Bond sale closing is expected to occur on September 30, 2016.

If Council chooses not to approve the attached bond Ordinace, the current contracts and bond covenants currently in existence with the Nevada SRF would continue to exist in their current form.

I move to approve Bill No.2712, creating an Ordinance to provide for the issuance of Sewer Refunding Bond Series 2016B with a principal amount of $27,099,690.98.