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RECOMMENDATIONS <br /> • Re: Recommendations for the Issuance of $2,850,000 General Obligation Fire Improvement <br /> Refunding Bonds, Series 1997C <br /> These recommendations, along with the attached Terms of Proposal, outline certain terms of <br /> the City's upcoming bond issue which represents the crossover advance refunding of the 2002 <br /> through 2012 maturities of the City's General Obligation Fire Improvement Bonds, <br /> Series 1991A, dated May 1, 1991. The refunding of the Series 1991A Bonds is being done to <br /> achieve interest cost savings. Based on current interest rates, the total net savings, after a City <br /> contribution of approximately $350,000 of existing debt service funds, is expected to be <br /> approximately $529,900 and the present value savings is approximately $169,150. The <br /> refunding issue is shortened by one year to a final maturity in 2011 by using the $350,000 of <br /> cash. <br /> We recommend the following for the bonds: <br /> 1. Action Requested To establish the date and time of receiving <br /> bids and establish the terms and conditions <br /> of the offering. <br /> 2. Sale Date and Time Thursday, September 18, 1997 until <br /> 11:00 A.M. with award by the City Council at <br /> 7:00 P.M. that same day. <br /> • 3. Authority and Purpose for the Bond Issue The bonds are being issued pursuant to <br /> Minnesota Statutes, Chapter 475. Proceeds <br /> will be used to refund the 2002 through 2012 <br /> maturities of the City's General Obligation <br /> Fire Improvement Bonds, Series 1991A, <br /> dated May 1, 1991. <br /> 4. Principal Amount of Offering $2,850,000. Included in the attached Terms <br /> of Proposal is a provision that permits the <br /> City to increase or reduce the principal in <br /> any of the maturities in a total amount not to <br /> exceed $100,000. This will allow for any <br /> necessary adjustments to fund the escrow <br /> account based on final interest rates and <br /> issuance costs. <br /> 5. Repayment Term Interest payments on the bonds are due on <br /> February 1 and August 1, commencing <br /> February 1, 1998. Principal will be due <br /> February 1, 2002 through 2011. <br /> 6. Payment Responsibilities, While the Bonds are general obligations of <br /> First Levy and Levy Cycle the City of Blaine and are backed by the <br /> City's full faith and credit and unlimited <br /> power to levy general ad valorem taxes, the <br /> Cities of Blaine, Mounds View and Spring <br /> Lake Park have entered into a Joint Powers <br /> Agreement which provides for the sharing of <br /> the debt service costs of the Bonds. The <br />