TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
|
Finance |
Adam O’Sullivan |
Treasury Manager |
|
Finance |
Blake Ruiz |
Senior Financial Analyst - Capital |
TITLE:
title
Adoption of a Capital Project Bond Debt Redemption Resolution
a. Resolution No. 1623: A Resolution of the City Council of the City of Redmond, Washington, Calling Certain Outstanding Limited Tax General Obligation Bonds for Redemption Prior to Maturity; and Approving Other Matters Related Thereto
OVERVIEW STATEMENT:
recommendation
Approve redemption resolution as required to redeem Limited Tax General Obligation (LTGO) bond Series 2015 and Series 2016.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
N/A
• Required:
Bond Ordinances state that the redemption must be carried out “upon adoption of a resolution of the governing body.”
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
A redemption resolution authorizes the City to redeem (pay off) outstanding bonds Series 2015 and Series 2016 prior to their stated maturity date, in accordance with the terms set forth in the bond documents. Redemption may be undertaken to achieve debt service savings, restructure outstanding obligations, spend down available resources, or respond to favorable market conditions.
Specifically, a redemption resolution:
• Authorizes the early repayment of designated outstanding bonds
• Approves the use of legally available funds for the redemption
• Directs staff and the City’s financing team to take the actions necessary to complete the redemption in accordance with the bond indenture and applicable law
Adoption of the resolution allows the City to move forward with the redemption process, including providing any required notice to bondholders within the timeframes specified in the bond documents.
The proposed resolution identifies the specific bond series eligible for redemption and establishes parameters for the transaction, including the source of funds and any applicable redemption premium. The resolution does not authorize the issuance of new debt unless separately approved by Council. Rather, it provides the legal authority necessary to retire outstanding obligations in a manner consistent with the City’s debt management policies and financial objectives.
Approval of the redemption resolution positions the City to reduce outstanding debt and/or achieve potential debt service savings, while maintaining compliance with all contractual and statutory requirements.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
Approved in current biennial budget: ☐ Yes ☒ No ☐ N/A
Budget Offer Number:
N/A
Budget Priority:
N/A
Other budget impacts or additional costs: ☐ Yes ☒ No ☐ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
2/24/2026 |
Study Session |
Provide Direction |
|
3/10/2026 |
Committee of the Whole - Finance, Administration, and Communications |
Provide Direction |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
The sooner the resolution is adopted, the more savings the City will achieve, and the more transportation impact fees will be spent.
ANTICIPATED RESULT IF NOT APPROVED:
The City will continue to make the scheduled debt service payments.
ATTACHMENTS:
Attachment A: Redemption Resolution