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Mounds View City Council Page Six <br />~egular Meeting April 12, 1993 <br />Mayor Linke closed the .public hearing at 8:15 p.m. and thanked the MWCC for <br />all of the information given at the hearing. <br />CONSENT AGENDA: <br />Samantha Orduno, City Administrator, read the Consent Agenda. <br />Mayor Linke asked if there were any items the Council desired removed from <br />the Consent Agenda. The Council removed no items.' <br />MOTION/SECOND: Quick/Wuori to adopt the Consent Agenda as <br />presented. <br />VOTE: 5 ayes 0 nays Motion Carried <br />COUNCIL BUSINESS: <br />A. <br />• <br />• <br />Don Brager, Finance Director-Treasurer introduced Mr. Ron Langness of <br />Springsted to explain Resolution No. 4359, A Resolution Providing for <br />the Competitive Negotiated Sale of $720,000 General Obligation Tax <br />Increment Refunding Bonds, Series 1993 B and Resolution No. 4360, A <br />Resolution Providing for the Competitive Negotiated Sale of $2,310,000 <br />General Obligation Water Revenue Refunding Bonds, Series 1993 A. <br />Mr. Langness explained that advance refunding is the .issuance of bonds <br />to pay off outstanding bonds before their due date. A cost savings is <br />realized because the new (refunding) bonds are issued at a lower <br />interest rate than the old (refunded) bonds. <br />Mr. Langness explained that the net interest rate on the callable <br />maturities of the General Obligation Water Revenue Bonds, Series 1991A <br />is 6.77$. Based on current market conditions it is estimated that <br />refunding bonds could be issued at a net interest rate of 5.37$ which <br />would result in a total savings of $166,000. <br />Mr. Langness explained that the net interest rate on the callable <br />maturities of the General Obligation Tax Increment Bonds, Series 1989E <br />is 6.71$. Based on current market conditions it is estimated that <br />refunding bonds could be issued at a net interest rate of 4.69 which <br />would result in a total savings of $42,900. <br />Mr. Langness recommended adopting Resolution No. 4360 because of the <br />larger cost savings and denying Resolution No. 4359 because the savings <br />were not significant enough. <br />MOTION/SECOND: .Quick/Blanchard to adopt Resolution No. 4360 - A <br />Resolution Providing for the Competitive Negotiated sale of <br />$2,310,000 General Obligation Water Revenue Refunding Bonds, Series <br />1993A <br />VOTE: 5 ayes 0 nays Motion Carried <br />