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2010-031 Council Resolution
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2010-031 Council Resolution
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Last modified
9/2/2014 1:55:16 PM
Creation date
8/29/2014 1:44:38 PM
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City Council
Council Document Type
Master List Resolution
Meeting Date
04/12/2010
Council Meeting Type
Regular
Resolution #
10-31
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• <br />City of Lino Lakes, Minnesota <br />April 1, 2010 <br />6. Security and Source of Payment <br />(a) Security The Bonds will be general obligations of the City, secured <br />by its full faith and credit and taxing power. <br />(b) Source of Payment <br />7. Prepayment Provisions <br />8. Credit Rating Comments <br />9. Term Bonds <br />In addition, the City will be pledge special assessments <br />against benefited property and net revenues of the City's <br />water utility. <br />The street improvement portion of the Bonds will be repaid <br />from special assessments filed against benefited property. <br />The water improvement portion of the Bonds will be repaid <br />from net revenues of the City's water utilities. <br />Due to their short maturity schedule, and to ensure the best <br />pricing possible, the Bonds will not be subject to optional <br />redemption prior to their stated maturity dates. <br />An application will be made to Moody's Investors Service <br />for a rating on the Bonds. The City's general obligation <br />debt is currently rated "Aa3." <br />In May of 2010 Moody's will institute a global rating <br />platform. This will result in the City receiving a recalibration <br />of the rating for its general obligation debt. Based on <br />information released by Moody's, we expect the City's <br />rating to recalibrate to "Aa2." A full rating review will be <br />done with Moody's prior to the sale of the Bonds. <br />We have included a provision that permits the underwriters <br />to combine multiple maturity years into a term bond, <br />subject to mandatory redemption on the same maturity <br />schedule provided in the Terms of Proposal. The <br />advantage to the underwriter is that it provides large blocks <br />of bonds, which are more attractive to bond funds, and <br />certain pension funds, which deal only with large blocks of <br />bonds. This in turn is a benefit to the City since selling <br />larger blocks of bonds reduces the risk to the underwriter, <br />allowing them to lower their costs and the interest coupons. <br />Since the Bonds are being offered on a competitive bid <br />basis and awarded on the lowest true interest cost, the City <br />will award the Bonds to the best bid regardless of whether <br />term bonds are chosen or not. <br />Page 2 <br />
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