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• CONSENT ITEM: F3 <br />2/12/03 <br />ITEM: Full Call On Remaining Outstanding Debt on the General Obligation <br />Improvement Bonds, Series 1993, dated May 1, 1993 <br />SUBMITTED BY: Roland O. Olson, Finance Director <br />REVIEWED BY: Heather Worthington, City Administrator <br />Deborah Eller, Ehlers & Associates <br />EXPLANATION: <br />Summary: Ehlers and Associates was contacted to inquire about the feasibility of calling <br />the remaining debt on the General Obligation Improvement Bonds, Series 1993. <br />Ehlers and Associates were the original financial consultants that assisted Falcon Heights <br />when this bond was obtained. The City has one remaining principal payment of <br />$130,000. For this last payment the interest charge increased to 4.75%. At the same <br />time, the overall average interest rate of return on our investments fell to a little below <br />4% as of the end of December. Even though there will be a charge of $350-$400 to call <br />the remainder on this bond, the city should save approximately $500 after costs compared <br />• to waiting and paying off the bond on February 1, 2004. There are adequate funds <br />available in this account to pre-pay the bond. <br />ATTACHMENT: <br />• Resolution 2003-04 authorizing redemption of outstanding General Obligation <br />Improvement Bonds, Series 1993 <br />ACTION REQUESTED: <br />Authorize full call of the General Obligation Improvement Bonds, Series 1993. <br />• <br />