CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of the second two-year extension to Contract 20-305, Financial Advisor Consulting Services, to Speer Financial, Inc. for an amount not to exceed $120,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Traci Marrocco, Interim Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In November 2020, the City Council approved the award of Contract 20-305, Financial Advisor Consulting Services, to Speer Financial Inc. (Speer) for a four-year term with three, two-year options to extend. As the City’s financial advisor, Speer provides independent professional consulting services for new and existing bonded debt.
During the original four-year term, Speer provided the following services:
• Bond advisor for Series 2022 general obligation bond issuance ($6,830,000) for Water AMI project
• Bond advisor for Series 2024 general obligation bond issuance ($19,435,000) for Water capital projects
• Bond advisor for Series 2025 general obligation bond issuance ($45,000,000) for Water, Electric, and general capital projects
• Bond advisor for Series 2026 general obligation bond issuance ($38,40,000) for Water and Electric capital projects
• Provided cost-benefit analysis on the refinancing of callable debt
• Continuous consultation and support on all matters related to existing and future debt
DISCUSSION:
Speer has performed well as the City’s financial advisor. Staff recommends awarding the second of three two-year extensions to the contract.
Staff anticipates at least one new bond issuance in 2027. Those bonds will support key projects, such as the Springbrook Water Reclamation Center improvements, the tollway electric substation improvements and various other infrastructure priorities.
The term of the extension is January 1, 2027 through December 31, 2028, with one, two-year extensions remaining.
FISCAL IMPACT:
CIP #: N/A
Financial advisory services are expensed to the Bond Issuance Costs accounts associated with the fund taking on the debt. The City does not include fees related to bond issuances in the annual budget, as fees are reduced from bond proceeds. A total of $49.7 million is tentatively planned for borrowing in 2027, pending Council approval.
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Account Number |
Fund Description |
Total Budget Amount |
|
8010****-571702 |
Various |
TBD |