2014/08/27 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET PROJECT TITLE: A briefing on the refinance of X Briefing COUNCIL BILL# the City's outstanding variable Proposed Action Originating Department Finance rate demand bonds and the Consent Contact Person Susy Haugen Everett Public Facility Action Phone Number X8612 District's variable rate demand First Reading FOR AGENDA OF 8/27/14 bonds --- Second Reading Third Reading Public Hearing Budget Advisory Initialed by: Department Head t CAA Ckg Council President lryll ) Location Preceding Action Attachments Department(s) Approval Amount Budgeted -0- Expenditure Required -0- Account Number(s): Budget Remaining -0- Additional Required -0- DETAILEI) SUMMARY STATEMENT: The letters of credit underlying the City's and the Everett Public Facility Districts variable rate demand bonds are expiring in November and December, respectively. Professional Financial Management (PFM), the City's financial advisor, solicited proposals for financing options from the banking community. In order to obtain the lowest cost of debt, it is proposed that the City refinance both debt issues under its own direct credit. This briefing will review the financing options resulting from that solicitation and outline a proposed new Interlocal Agreement with the PFD that will govern each parties responsibilities relating to this change in debt issuance. RECOMMENDATION (Exact action requested of Council): 1