09/09/1996 Council Minutes - Laserfiche WebLink

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• • • COUNCIL MINUTES SEPTEMBER 9,1996 (September 6, 1996) Approved FINANCE DEPARTMENT REPORT, MARY VASKE Consideration of Resolution No. 96 -100 Providing for Prepayment and Redemption of Certain Outstanding General Obligation Bond - Mr. Shannon of Springsted, Inc. addressed Council regarding this item, indicating that there are adequate funds on hand to retire the temporary bond in its entirety on November 1, 1996. Council Member Bergeson asked if this action will result in a gain or surplus to the closed bond fund. Ms. Vaske responded no, it will use part of the area -and -unit fund. Council Member Bergeson asked if the assessments will exceed the amount needed to pay the bond. Ms. Vaske indicated that the amount of assessment will be determined by Council during this meeting. Council Member Neal moved to adopt Resolution No. 96 - 100, as presented. Council Member Lyden seconded the motion. Motion carried unanimously. Resolution No. 96 - 100 can be found at the end of these minutes. Consideration of Resolution No. 96 - 101 Awarding Sale of $4,685,000 General Obligation Improvement Bonds, Series 1996A, and $3,320,000 General Obligation Water Revenue Bonds, Series 1996B, Directing Execution and Delivery and Providing for Their Payment - Mr. Shannon explained that following preparation and distribution of an offering statement to the underwriting community and application to Moody's Investment Service for rating of the issues based upon the City's overall present and future financial condition, bids have been taken on the Series A General Obligation Bonds as well as Series B General Obligation Water Revenue Bonds. Mr. Shannon requested that the Series A and Series B bonds be discussed simultaneously and decided upon at this time. Following review of the bids received, it was recommended that FBS Investment Services, Inc. be awarded purchase of the $4,685,000 General Obligation Improvement Bonds, Series 1996 A, for the price of $4,637,681.50, at a true interest cost of 5.04783%; and, that Cronin & Company, Incorporated be awarded purchase of the $3,320,000 General Obligation Water Revenue Bonds, Series 1996B, for the price of $3,280.160, at a true interest cost of 5.40782%. Council Member Lyden asked what the interest rate would have been should issue have been at a straight "A" rating. Mr. Shannon replied interest would probably have been approximately another 5 basis points higher. Council Member Bergeson asked what projects comprise the $4,685,000. Mr. Shannon stated the projects are Centennial School, Pheasant Hills 7th Addition, Trappers' Crossing, Marshan Lake Condos, 4th Avenue Trunk Utilities, and Cedar Avenue Lift Station. Council Member Lyden asked if the length of time for repayment of the bonds is standard. Mr. Shannon responded yes, that call had been set at a fairly aggressive rate. Council Member Bergeson moved to adopt Resolution No. 96 - 101 awarding sale of the 1996A and 1996B Bonds, as presented. Council Member Kuether seconded the motion. Motion carried unanimously. Resolution No. 96 - 101 can be found at the end of these minutes.