10/27/2003 Council Packet - Laserfiche WebLink

Home Search

• • • RECOMMENDATIONS Re: Recommendations for the Issuance of $2,120,000 General Obligation Improvement and Refunding Bonds, Series 2003A ( the "Bonds" or the "Issue ") We respectfully request your consideration of our recommendations for the above -named Issue. Bond proceeds will be used to (i) finance street and utility improvement projects in various areas of the City and (ii) refund the February 1, 2005 through 2007 maturities of the City's General Obligation Improvement Bonds, Series 1996A, dated October 1, 1996. The refunding portion of the transaction is being undertaken to achieve interest cost savings. We recommend the following for the Bonds: 1. Action Requested To establish the date and time of receiving bids and establish the terms and conditions of the offering. 2. Sale Date and Time Monday, November 24, 2003 at 10:00 A.M., with consideration for award by the City Council at 6:30 P.M. that same day. 3. Authority for the Bond Issue The Bonds are being issued pursuant to the City's Charter and Minnesota Statutes, Chapters 475 and 429. 4. Principal Amount of Offering $2,120,000 Included in the Terms of Proposal for the Bonds is a provision that permits the City to increase or reduce the principal amount of the Bonds in any of the maturities. This allows for any necessary adjustments required based on final interest rates and issuance costs. 5. Repayment Term 6. Security and Payment Cycle (a) Security (b) Source of Payment (c) Payment Cycle The Bonds will mature annually February 1, 2005 through 2019. Interest will be payable semi - annually each February 1 and August 1, commencing August 1, 2004. The Bonds will be general obligations of the City. The Bonds will be repaid from special assessments levied against benefited properties. Each year's first -half collection of assessments will be used to pay the interest payment due August 1 in the year of collection. Second -half collections of assessments plus surplus first -half collections will be used to pay the February 1 principal and interest payment due in the following year. The City will file assessments on all properties on or about October 15, 2003 for collection in 2004.