09/25/2006 Council Packet - Laserfiche WebLink

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• • AGENDA ITEM 2A & B STAFF ORIGINATOR Al Rolek MEETING DATE September 25, 2006 TOPIC Consideration of Resolution 06 -147 Providing For The Issuance And Sale Of Approximately $3,025,000 General Obligation Capital Improvement Plan Bonds, Series 2006E and Resolution 06 -148 Providing For The Issuance And Sale Of Approximately $1,745,000 General Obligation Water Revenue Refunding Bonds, Series 2006F VOTE REQUIRED Simple Majority Minnesota Statutes Section 475.521 authorize the issuance of CIP bonds following a required public hearing on and the adoption of a capital improvement plan calling for the improvement to be financed in this manner. On September 11 the City Council held a public hearing on its Municipal Building and Facilities CIP for 2006 -2010 and adopted the plan by approving Resolution 06 -146. The CIP calls for the acquisition of the City Hall and Police Department portions of the Civic Center Complex from the Lino Lakes EDA to be financed through the issuance of CIP Bonds. This action would refund approximately 80% of the outstanding Lease Revenue Bonds 1998A and would result in approximately $226,000 of present value savings. Our financial advisor, Springsted, Inc. has issued their recommendation for the issuance of $3,025,000 G.O. Capital Improvement Plan Bonds Series 2006E. In addition, 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. Water Revenue Bonds 1996B, it is estimated that the city can achieve net present value savings of approximately $63,000 over the term of the issue. Springsted, Inc. has issued their recommendation for the issuance of $1,745,000 G.O. Water Revenue Refunding Bonds Series 2006F. If approved, the bids for these two issues would be received on October 23, 2006, with consideration for award of sale by the City Council at its meeting the same day. The Series 2006E issue would have a 12 -year term and would be repaid through property tax levies. The Series 2006F issue would be repaid over the next five years through the use of utility and trunk fees. Staff recommendation is for the City Council to approve Resolution 06 -147 providing for the issuance and sale of $3,025,000 G.O. Capital Improvement Plan Bonds, Series 2006E and Resolution 06 -148 providing for the issuance and sale of $1,745,000 G.O. Water Revenue Refunding Bonds, Series 2006F. 1. Adopt Resolutions 06 -147 and 06 -148. 2. Refer to Staff for further review. 3. Deny Resolutions 06 -147 and 06 -148. Option 1. - 3 3 -