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City of Missoula, Montana Item to be Referred to City Council Committee Committee: A & F Item: Bond Resolution – $1,350,012 Sewer System Revenue Bonds(DNRC Water Pollution Control State Revolving Loan Program), consisting of $361,012 subordinate lien taxable Series 2009A Bond, $925,000 Series 2009 B Bond, and $64,000 Series 2009 C Bond Date: November 5, 2009 Prepared by: Brentt Ramharter Initiated by: Brentt Ramharter Action Required: Approve final bond resolution setting the form and details for the $1,350,012 sewer system revenue bonds to be financed through the State DNRC Revolving Loan Program. Recommended Motion: “I move the City Council adopt a resolution relating to $1,350,012 sewer system revenue bonds (DNRC water pollution control State Revolving Loan Program), consisting of $361,012 subordinate lien taxable series 2009A Bond, $925,000 Series 2009B Bond, and $64,000 Series 2009 C Bond; authorizing the issuance and fixing the terms and conditions thereof”. Timeline: Referral to committee: November 5, 2009 Committee discussion: November 18,2009 Deadline: Have council approve at November 23, 2009 meeting Background and Alternatives Explored: The $1,350,012 of sewer revenue bond financing contains very favorable terms to pay for a portion of the costs associated with the installation of sewer pipes on the west side of the Rattlesnake valley. In order to close on this bond sale and receive the bond proceeds, the City of Missoula must delineate all of the specifics concerning the issuance of these bonds by the City. This resolution is quite standard after each bond sale and has been prepared by the City's bond counsel, Dorsey Whitney. The details include where and how the city is to make its required debt payments, how the debt is secured, and items such as when the city can redeem the bonds early. Financial Implications: These bond proceeds are needed to complete the financing package developed by the City Council to construct sewer lines in the unsewered areas of the Rattlesnake valley. Sewer rates need to be increased to help shoulder the debt service requirements of this financing. Attachments: Resolution