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Home My WebLink About200-19 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 200-19 File Number: 2019-0454 2019 BOND APPROPRIATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $134,588,625.00 TO APPROPRIATE PROCEEDS FROM THE 2019 CITY SALES AND USE TAX BONDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, in the total amount of $134,588,625.00 to appropriate proceeds from the 2019 City Sales and Use Tax Bonds. PASSED and APPROVED on 9/3/2019 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0454 Agenda Date: 9/3/2019 Version: 1 Status: Passed In Control: City Council Meeting Agenda Number: C. 14 2019 BOND APPROPRIATION: File Type: Resolution A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $134,588,625.00 TO APPROPRIATE PROCEEDS FROM THE 2019 CITY SALES AND USE TAX BONDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, in the total amount of $134,588,625.00 to appropriate proceeds from the 2019 City Sales and Use Tax Bonds. City of Fayetteville, Arkansas Paye 1 Printed on 9/4/2019 Paul A. Becker Submitted By City of Fayetteville Staff Review Form 2019-0454 Legistar File ID 9/3/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/6/2019 Chief Financial Officer Finance & Internal Services Department Submitted Date Division / Department Action Recommendation: 2019 CITY SALES AND USE TAX BONDS: A RESOLUTION TO APPROVE BUDGET ADJUSTMENTS IN THE AMOUNT OF $134,588,625 TO APPROPRIATE PROCEEDS FROM THE 2019 CITY SALES AND USE TAX BONDS Budget Impact: VARIOUS VARIOUS Account Number Fund VARIOUS VARIOUS Project Number Project Title Budgeted Item? NA Current Budget $ - Funds Obligated $ - Current Balance $ - Does item have a cost? NA Item Cost $ - Budget Adjustment Attached? Yes Budget Adjustment $ 134,588,625.00 Remaining Budget $ 134,588,625.00 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 3RD TO: Mayor and City Council FROM: Paul A. Becker, Chief Financial Officer DATE: August 16, 2019 CITY COUNCIL MEMO SUBJECT: Council Appropriation of Phase One of the 2019 Sales Tax Bond Program RECOMMENDATION: On May 28, 2019 the City Council authorized the Mayor to issue up to $142,670,000 in par value of bonds for phase one of the 2019 Sales Tax Bond Issue, which represents a portion of the bonds authorized by the voters of Fayetteville. A total of $127,595,000 in par value of bonds were sold to provide the necessary funds to complete the projects identified in phase one of the bond issuance. Bonds were offered on July 18, 2019 and purchase agreements were subsequently entered into on that date. The total proceeds generated from those sales were $134,588,622, after deduction the cost of issuance of these bonds in the amount of $842,661 and providing $3,212,003 for the liquidation of outstanding debt service requirements for previously issued sales tax bonds. A total amount of $130,533,958 was generated for project construction. The administration requests those amounts be appropriated as indicated on the attached budget amendment. DISCUSSION: The amounts appropriated by specific bond question were determined by first determining the amount generated on the par value sold by question and adding the premium generated by each question and subtracting the cost of issuance and underwriters discount, both of which were allocated based on the total amounts generated by each project question. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 After transferring the amount of $3,212,003 to the debt service fund to liquidate the outstanding sales tax bonds previously issued. The amounts generated for construction for each bond question were as follows: Question Two Transportation Improvements $ 36,037,589 Question Three Trail Improvements $ 2,409,041 Question Four Drainage Improvements $ 8,009,572 Question Five Park Improvements $ 11,085,016 Question Six Economic Development $ 3,147 323 Question Seven City Facilities Improvements $ 504,415 Question Eight Construction of an Arts Corridor $ 20,016,970 Question Nine Police Facilities Improvements $ 38,801,126 Question Ten Firefighting Facilities Improvements $ 10,522,906 BUDGET/STAFF IMPACT: The approval of this resolution will appropriate the proceeds of the bond sale for phase one of the 2019 Sales Tax Bonds approved by the voters of Fayetteville. 2 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) 5 Errors Budget Year Division Adjustment Number /Org2 CHIEF FINANCIAL OFFICER (110) 2019 Requestor: Paul A. Becker BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: To recognize the proceeds from the 2019 Sales and Use Tax Bond Issue H:\Projects for Paul\2019\2019 Bond BA 2019-0454\Copy of BA_2019-0454 - Bond Appropriation.xlsm 1 of 2 COUNCIL DATE: 9/3/2019 LEGISTAR FILE ID#: 2019-0454 KevL+v SprL ujer 8/16/2019 12:23 PM Budget Director Date D - (City Council) TYPE: JOURNAL #: 9/3/2019 GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: TOTAL 134,588,625 134,588,625 v.20190516 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 4602.860.7000-6884.00 - 34,330,000 46020 7000 RE Proceeds from - Bonds 4602.860.7000-6884.02 - 1,930,961 46020 7000 RE Proceeds from - Premium on Bond Issue 4602.860.7000-7506.00 223,372 - 46020 7000 EX Bond Issuance Cost 4602.860.7210-5809.00 3,000,000 - 46020 7210 EX **Street Improvements 4602.860.7501-5809.00 800,000 - 46020 7501 EX **Street Improvements 4602.860.7999-5899.00 32,237,589 - 46020 7999 EX Unallocated - Budget 4603.860.7000-6884.00 - 2,295,000 46030 7000 RE Proceeds from - Bonds 4603.860.7000-6884.02 - 128,974 46030 7000 RE Proceeds from - Premium on Bond Issue 4603.860.7000-7506.00 14,933 - 46030 7000 EX Bond Issuance Cost 4603.860.7501-5814.05 360,000 - 46030 7501 EX **Sidewalk/Trails-Trails 4603.860.7999-5899.00 2,049,041 - 46030 7999 EX Unallocated - Budget 4604.860.7000-6884.00 - 7,630,000 46040 7000 RE Proceeds from - Bonds 4604.860.7000-6884.02 - 429,218 46040 7000 RE Proceeds from - Premium on Bond Issue 4604.860.7000-7506.00 49,646 - 46040 7000 EX Bond Issuance Cost 4604.860.7999-5899.00 8,009,572 - 46040 7999 EX Unallocated - Budget 4605.860.7000-6884.00 - 10,560,000 46050 7000 RE Proceeds from - Bonds 4605.860.7000-6884.02 - 593,726 46050 7000 RE Proceeds from - Premium on Bond Issue 4605.860.7501-5806.00 985,000 - 46050 7501 EX **Park Improvements 4605.860.7999-5899.00 10,100,016 - 46050 7999 EX Unallocated - Budget H:\Projects for Paul\2019\2019 Bond BA 2019-0454\Copy of BA_2019-0454 - Bond Appropriation.xlsm 1 of 2 H:\Projects for Paul\2019\2019 Bond BA 2019-0454\Copy of BA_2019-0454 - Bond Appropriation.Asm 2 of 2 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 4606.860.7000-6884.00 - 3,170,000 46060 7000 RE Proceeds from - Bonds 4606.860.7000-6884.02 - - 46060 7000 RE Proceeds from - Premium on Bond Issue 4606.860.7000-7506.00 22,677 - 46060 7000 EX Bond Issuance Cost 4606.860.7999-5899.00 3,147,323 - 46060 7999 EX Unallocated - Budget 4607.860.7000-6884.00 - 480,000 46070 7000 RE Proceeds from - Bonds 4607.860.7000-6884.02 - 27,539 46070 7000 RE Proceeds from - Premium on Bond Issue 4607.860.7000-7506.00 3,124 - 46070 7000 EX Bond Issuance Cost 4607.860.7999-5899.00 504,415 - 46070 7999 EX Unallocated - Budget 4608.860.7000-6884.00 - 19,070,000 46080 7000 RE Proceeds from - Bonds 4608.860.7000-6884.02 - 1,071,051 46080 7000 RE Proceeds from - Premium on Bond Issue 4608.860.7000-7506.00 124,081 - 46080 7000 EX Bond Issuance Cost 4608.860.7999-5899.00 20,016,970 - 46080 7999 EX Unallocated - Budget 4609.860.7000-6884.00 - 36,965,000 46090 7000 RE Proceeds from - Bonds 4609.860.7000-6884.02 - 2,076,643 46090 7000 RE Proceeds from - Premium on Bond Issue 4609.860.7000-7506.00 240,517 - 46090 7000 EX Bond Issuance Cost 4609.860.7999-5899.00 38,801,126 - 46090 7999 EX Unallocated - Budget 4610.860.7000-6884.00 - 10,025,000 46,100 7000 RE Proceeds from - Bonds 4610.860.7000-6884.02 - 563,135 46,100 7000 RE Proceeds from - Premium on Bond Issue 4610.860.7000-7506.00 65,229 - 46,100 7000 EX Bond Issuance Cost 4610.860.7999-5899.00 10,522,906 - 46,100 7999 EX Unallocated - Budget 3340.001.9440-6884.00 - 3,242,378 RE "Proceeds from - Bonds 3440.900.9440-7506.00 30,375 - EX Bond Issuance Cost 3440.900.9440-5500.00 3,212,003 - EX Principal Payment H:\Projects for Paul\2019\2019 Bond BA 2019-0454\Copy of BA_2019-0454 - Bond Appropriation.Asm 2 of 2