LRB � RESEARCH AND ANALYSIS SECTION ANALYSIS

NOVEMBER 29, 2006 AGENDA                       ITEM 23 FILE 061005

FINANCE & PERSONNEL COMMITTEE                                  JAMES CARROLL  

File #0061005 is a resolution relating to the issuance and sale of general obligation

bonds in the amount of $28,000,000 for a project undertaken for sewage disposal,

sewer improvement and construction.

Background and Discussion

1. The Comptroller�s Office annually submits initial-borrowing resolutions for projects and programs approved in the adopted budget.

2. The resolution authorizes the sale of general obligation bonds in the amount of

      $28,000,000 for a project undertaken for sewage disposal, sewer improvement

       and construction. 

3. The funding is for the Relief and Relay Sewer Capital Program ($24.5 million) and the Expansion of Capacity Sewer Program ($3.5 million). The Relief and Relay Capital Program involves the replacement of existing combined, sanitary and storm sewers and the Expansion of Capacity Sewer Program extends sewer services to those areas of the City that do not currently have sewer service or enlarges the capacity of existing sewers.

Fiscal Impact

Until the actual structuring of the debt issue is determined by the Public Debt Commission, details relating to the long-term fiscal impact will not be known. Depending on actual sale date in 2007, a maximum of 6 months interest would be incurred during the year.  If sold after July 1, 2007, there would be no fiscal impact in 2007. 

Cc:  Marianne Walsh       Prepared by:

Craig  Kammholz      Jim Carroll,  X8679   Mark Nicolini      LRB Research & Analysis

                W. Martin Morics                                                                                  November 22, 2006

                Richard Li