2003-194 Council Resolution - Laserfiche WebLink

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Project Designation & Description: Elm Street Century Farm Lift Station Twilight Acres Water Main (b) the City is also authorized by Minnesota Statutes, Chapter 475 (Act) and Section 475.67, Subdivision 3, of the Act to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (c) Section 475.67, subdivision 4 of the Act permits the sale of refunding obligations during the six month period prior to the date on which the obligations to be refunded may be called for redemption; (d) the outstanding bonds to be refunded (Refunded Bonds) consist of the $4,685,000 General Obligation Public Improvement Bonds, Series 1996A, dated October 1, 1996, of which $1,700,000 in principal amount is currently outstanding and is callable on February 1, 2004. (e) it is necessary and expedient to the sound financial management of the City that the City issue approximately $2,120,000 General Obligation Improvement and Refunding Bonds, Series 2003A (Bonds) to (i) provide financing for the Improvements, and (ii) to refund the Refunded Bonds in order to reduce debt service costs, as follows: Improvements $ 944,870 Refunding Costs 1,170,000 Costs of Issuance 28,450 Underwriter's Discount 23,320 Total Issue $2,120,000 2. To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $2,096,680. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $23,320. The excess of the purchase price of the Bonds over the sum of $2,096,680 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: SJB-239164v1 LN 140-84