04/12/2010 Council Packet - Laserfiche WebLink

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AGENDA iTEM 2A STAFF ORIGINATOR Al Rolek • MEETING DATE April 12, 2010 • • TOPIC Consideration of Resolution 10 -31 Providing for the Issuance and Safe of Approximately $1,015,000 General Obligation Improvement and Utility Revenue Refunding Bonds, Series 2010A VOTE REQUIRED Simple Majority Minnesota Statutes Section 475.67, subdivision 3 authorizes the issuance and sale of refunding obligations during the six month period prior to the date on which the obligations to be refunded may be called for redemption. Our financial advisor, Springsted, inc. has issued their recommendation for the issuance of $1,015,000 G.O. Improvement and Utility Revenue Refunding Bonds Series 2010A. This issue would refinance the outstanding portion of G.O. Improvement and Utility Revenue Bonds, Series 2004A bond. Staff continually monitors the market for opportunities to refinance existing debt issues at lower interest rates, thereby saving the city money on financing costs. By refinancing the outstanding balance of our G.O. Improvement and Utility Revenue Bonds 2004A, it is estimated that the city can achieve net present value savings of approximately $41,120 over the term of the issue, a 4.26% savings. If approved, the bids for this refunding issue would be received on May 10, 2010, with consideration for award of sale by the City Council at its meeting the same day. The Series 2010A issue would have a 10 -year term and would be repaid through previously adopted special assessments and use of utility revenues. Staff recommendation is for the City Council to approve Resolution 10 -31 providing for the issuance of $1,015,000 G.O. Improvement and Utility Revenue Refunding Bonds Series 2010A. 1. Adopt Resolution 10 -31. 2. Refer to Staff for further review. 3. Deny Resolution 10 -31. Option 1.