07/24/2006 Council Packet - Laserfiche WebLink

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• AGENDA ITEMS 2A & 2B STAFF ORIGINATOR Al Rolek MEETING DATE July 24, 2006 TOPIC Public Hearing on Issuance and Sale of General Obligation Tax Abatement Bonds, Consideration of Resolution 06 -117 Awarding the Sale of $2,640,000 General Obligation Tax Abatement Bonds, Series 2006C and Resolution 06 -118 Awarding the Sale of $570,000 General Obligation Utility Revenue Bonds, Series 2006D VOTE REQUIRED Simple Majority On May 22 the City Council approved resolutions 06 -85 and 06 -86 calling for the issuance of $2,470,000 G.O. Tax Abatement Bonds to finance its obligation to the YMCA project, and $570,000 G.O. Utility Revenue Bonds to finance utility projects in the city. The City Council had • previously authorized the issuance of conduit bonds on behalf of the YMCA to finance that entity's portion of the facility construction costs. Due to a delay in the closing on the conduit bonds, the City Council adopted Resolution 06 -96 and 06 -97 amending the schedule for the issuance and sale of the G.O. Tax Abatement Bonds and the G.O. Utility Revenue Bonds and authorized the Finance Director to determine the date for a public hearing (as the Tax Abatement bonds are being issued as 501 (c) (3) bonds, a public hearing must be held in conjunction with their sale), publish notice of the hearing, and set the sale date of the Tax Abatement bonds to a date which follows the closing on the conduit bonds. The date for the hearing and the sale of these bond issues was set for July 24 based upon successful dosing on the conduit financing on June 28. The Series 2006C bond issue will be used to finance the city's $2,350,000 commitment toward the construction of the YMCA facility. The Series 2006D will be used to finance public improvement projects for County Road 49 Watermain Improvements (in conjunction with the Anoka County bridge replacement project) and Lois Lane Street and Utility Improvements. The City's financial advisor, Springsted, Inc., received bids for these issues earlier today. Terri Heaton, our representative from Springsted, will be in attendance to outline the outcome of the bids received and their recommendations for award of the sale. • Following the public hearing and pending the outcome of the competitive bid process, it is staff's recommendation that the City Council adopt, in separate actions, Resolution 06 -117 Awarding the Sale of $2,460,000 General Obligation Tax Abatement Bonds, Series 2006C and Resolution 06- 118 Awarding the Sale of $570,000 General Obligation Utility Revenue Bonds, Series 2006D. The amount of the Series 2006C is reduced in anticipation of reduced capitalized interest costs due to the delayed sale of the issue.