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Home My WebLink About2003-195 Council ResolutionExtract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Monday, October 27, 2003, commencing at 6:30 o'clock P.M. The following members of the Council were present: and the following were absent: * * * The following resolution was presented by Councilmember RESOLUTION NO. 03-195 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $250,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003B BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (City) as follows: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of the City's charter and Minnesota Statutes, Chapter 429 (Act); SJB-239179v1 LN 140-84 Project Designation & Description: Total Project Cost 21st Avenue Street and Storm Sewer Project Costs $242,500 Costs of Issuance 7,500 Total Issue $250,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $250,000 Taxable General Obligation Improvement Bonds, Series 2003B (Bonds) pursuant to the Act to provide financing for the Improvements. 2. Springsted Incorporated (Springsted) is authorized and directed to negotiate sale of the Bonds at the time it deems reasonable in light of market conditions, subject to approval by the City Council of the final terms and conditions of the Bonds. When Springsted has negotiated a proposed sale of the Bonds, the City Council will meet at a regularly scheduled or duly noticed special meeting to consider the proposal on the Bonds and take any other appropriate action with respect to the Bonds. 3. Springsted is directed to notify the City promptly if it determines not to proceed with solicitation of proposals by December 1, 2003. The motion for the Councilmember adoption of the foregoing resolution was duly seconded by , and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the resolution was declared duly passed and adopted. SJB-239179v1 LN140-84 �ekobaei-ai1,aoO3 • • 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 6:30 o'clock P.M. on Monday, November 24, 2003, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the resolution was declared duly passed and adopted. SJB-239164v1 LN140-84 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on October 27, 2003, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of approximately $250,000 Taxable General Obligation Improvement Bonds, Series 2003B of the City. WITNESS My hand as City Clerk and the corporate seal of the City this day of 2003. City Clerk City of Lino Lakes, Minnesota SJB-239179v1 LN 140-84 85 E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN 55101-2887 651-223-3000 FAX: 651-223-3002 October 21, 2003 • Mayor Bergeson and City Council Members Mr. Daniel Tesch, Acting City Administrator Mr. Alan Rolek, Finance Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014-1182 The 21st Avenue Street and Storm project costing an estimated $240,000 is recommended to be bonded for separately from three other projects (Elm Street, Twilight Acres and Century Farm Lift Station) included in the proposed $2,120,000 General Obligation Improvement and Refunding Bonds, Series 2003A, which will be issued as tax exempt bonds. According to Bond Counsel, certain provisions in the City Charter require that the 21st Avenue Street and Storm Project be financed with taxable bonds rather than tax-exempt. As a result, Springsted Incorporated (Springsted) recommends issuing $250,000 General Obligation Improvement Taxable Bonds, Series 2003B. The bonds would provide proceeds of $240,000 for project costs and $10,000 of issuance costs. We are recommending that rather than sell these bonds competitively, as recommended for the 2003A Bonds, that these be privately placed through a local bank. SPRINGSTED Advisors to the Public Sector We are recommending this approach to save costs and effort. A competitive process, which will yield lower interest costs, would also increase the costs of marketing such as bond rating fees, bid process and awarding. At bond size thresholds below $500,000, the slightly higher issuance costs may not be offset by lower interest rates achieved through a competitive sale because interest is a smaller component of total costs. When factoring in additional City staff time, a negotiated sale is more efficient for an issue of this size. The $250,000 General Obligation Improvement Taxable Bonds, Series 2003B would be 10 year bonds with level debt service payments. Call dates for early retirement would be negotiated along with interest rates. The bonds would be repaid from special assessments totaling $135,000 plus interest at 7%. The remainder would be paid from annual tax levies. Under the negotiated approach, Springsted would contact a local bank recommended by the City and negotiate pricing for each maturity and any terms or conditions. Current market index rates and recent bond transactions would be considered in agreeing to rates and conditions. The negotiated rates would be brought back to the City Council for final approval prior to awarding the sale to the bank. Appropriate documents would then be completed in conjunction with Bond Counsel. Springsted would facilitate the process through closing. CORPORATE OFFICE: SAINT PAUL, MN • Visit our website at www.springsted.com IOWA • KANSAS • MINNESOTA • VIRGINIA • WASHINGTON, DC • WISCONSIN Page 2 The interest rates and other terms of the sale would be negotiated within the next few weeks and closing is anticipated during November. Please call me at 651-223-3022 if you have any questions or would like additional information. Sincerely, Terri Heaton Senior Vice President/ Client Representative STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, October 27, 2003, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of approximately $2,120,000 General Obligation Improvement and Refunding Bonds, Series 2003A of the City. WITNESS My hand as City Clerk and the corporate seal of the City this day of , 2003. City Clerk City of Lino Lakes, Minnesota (SEAL) SJB-239164v1 LN 140-84