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..- ,� REQUEST FOR COUNCIL CONSIDERATION AgeanaSeron: 9F <br /> nrif <br /> .,�':" Report Number: 9 4-1 l 1_2C, <br /> STAFF REPORT Report Date: /2[�/g� <br /> ?? Councl Ac_ion: <br /> 0 Special Order of Business <br /> CITY COUNCIL.MEETING DATE MARCH 28 1 a9[. C Public Hearings <br /> G Consent Agenda <br /> Council Business <br /> Item Description: Initiating Process for the Sale of the City's Taxable General <br /> Obligation Tax Increment Refunding Bonds <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> —ExpianationiSummarJ(attac�s. supplement sheets as necessary.) <br /> 5T7MMARY; <br /> Attached please find recommendations for the sale of refunding bonds from Springsted, Inc., the <br /> City's financial advisors. Springsted recommends the sale and issuance of $4,970,000 Taxable <br /> General Obligation Tax Increment Bonds, Series 1994A to refund the City's $6,000,000 Taxable <br /> General Obligation Tax Increment Bonds, Series 1988A. Based upon current market conditions <br /> Springsted estimates that the City will realize a savings of $426,750 as a consequence of the <br /> difference in interest rates between the two issues; 6.50% vs. 9.69%. <br /> Springsted further recommends the sale and issuance of $725,000 General Obligation Tax <br /> Increment Bonds, Series 1994B to refund the City's $930,000 General Obligation Tax Increment <br /> Bonds, Series 1989B. Based upon current market conditions Springsted estimates that the City will <br /> ' realize a savings of $30,595 as a consequence of the difference in interest rates between the two <br /> issues; 4.87% vs. 6.72%. . <br /> James O'Meara, the City's bond attorney, has prepared the attached resolutions for your <br /> consideration which authorize the sale of these two refunding bonds. Mr. O'Meara has <br /> reservations about the sale and issuance of the $725,000 General Obligation Tax Increment Bonds, <br /> Series 1994B which refund $930,000 General Obligation Tax Increment Bonds, Series 1989B as a <br /> • consequence of IRS regulations. He has no problem with the $4,970,000 Taxable General <br /> Obligation Tax Increment Bonds, Series 1994A. Mr. O'Meara anticipates resolving this issue, one <br /> way or another, by Monday. Staff will report Mr. O'Meara's recommendation on this issue <br /> Monday. <br /> cbi -'..41-vi --- 1\-e-- ------ <br /> Don Brager, Finance 'rector-Treasurer <br /> RECMMENDATION: <br /> Approve Resolution No. 4537, A Resolution Initiating The Process For The Sale Of The City's Taxable General <br /> Obligation Tax Increment Refunding Bonds, Series 1994A, and approve Resolution No. 4538, A Resolution Initiating <br /> The Process For The Sale Of The City's General Obligation Tax Increment Refunding Bonds, Series 1994B, subject <br /> to approval of the City's bond attorney. <br />