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WS -5 <br />WORK SESSION MEMORANDUM <br />To: Mayor and Council Members <br />From: Al Rolek <br />Date: April 5, 2010 <br />Re: Work Session Item 5 — Refunding of G.O. Improvement and Utility <br />Bonds 2004A <br />cc: <br />Attached is a memo from Terri Heaton of Springsted, Inc., relating to the feasibility <br />analysis for refunding of our G.O. Improvement and Utility Bonds 2004A. These bonds <br />were originally issued to finance several projects - the construction of the Birch/Hodgson <br />intersection, Marshan Estates streets and utilities, 62 " Street and Holly Drive. We <br />routinely monitor debt issues for refinancing opportunities that will result in net savings <br />through reduced interest costs. The interest rate environment now makes it attractive to <br />refinance these bonds at this time. In refinancing this issue at this time we anticipate an <br />estimated savings of $45,408 over the term of the issue. This results in a 4.29% present <br />value savings of the refunded debt service. <br />Staff recommends that the City Council approve the refinancing of this issue. If <br />acceptable, a resolution authorizing the refunding of this issue through the issuance of <br />$1,015,000 G.O. Improvement & Utility Revenue Refunding bonds will be on the April <br />12 agenda for formal action. Bids would be received on May 10, and the bonds formally <br />sold on the same date. Terri will be in attendance at the meeting to address any questions <br />or comments. <br />Page 1 <br />