2004-142 Council Resolution - Laserfiche WebLink

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RECOMMENDATIONS Re: Recommendations for the Issuance of $1,330,000 General Obligation Improvement and Utility Revenue Bonds, Series 2004A (the "Bonds" or the "Issue ") Proceeds of the Bonds will be used to finance various street, sanitary sewer and water utility improvements projects within the City. We recommend the following for the Bonds: 1. Action Requested 2. Sale Date and Time 3. Authority for the Bond Issue 4. Repayment Term 5. Security and Source of Payment (a) Security (b) Source of Payment 6. Prepayment Provisions 7. Credit Rating Comments To establish the date and time of receiving bids and establish the terms and conditions of the offering. Monday, October 25, 2004, at 11:30 A.M., with award by the City Council at 6:30 P.M. the same day. The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475. In addition the street improvement portion of the Bonds is being issued pursuant to Minnesota Statutes, Chapter 429 and the water utility fund improvement portion of the Bonds is being issued pursuant to Minnesota Statutes, Chapter 444. The Bonds will mature annually February 1, 2006 through 2020. Interest will be payable semi - annually each February 1 and August 1, commencing August 1, 2005. The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy general ad valorem taxes. The street improvement portion of the Bonds will be repaid from special assessments filed against benefited property. The water improvement portion of the Bonds will be repaid from net revenues of the City's water utilities. The City may elect on February 1, 2010, and on any date thereafter, to prepay the Bonds due on or after February 1, 2011, at a price of par plus accrued interest. This five year call provision was requested by the City to allow the City the flexibility to call all or a portion of the Bonds on February 1, 2011 in the event prepayments of assessments have been received. An application will be made to Moody's Investors Service for a rating on the Bonds. The City's current general obligation credit rating is "A2 ".