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Agenda Section: 9 .A. nif EN REQUEST FOR COUNCIL CONSIDERATION STAFF REPORT ReportNumber. 93-469C CURDS Report Date: councill Action: 4/6/93 0 Special Order of Business • • CITY COUNCIL MEETING DATE Apr i 1 12, 1993 0 Public Hearings 0 Consent Agenda 3s:i Council Business Item Description: Consideration of Resolution Nos. 4359 and 4360 - Resolution Providing for the Competitive Negotiated Sale of $720,000 General Obligation Tax Increment Refunding Bonds and 4 C-. . .. Zs . • s. • .- •;u.- - ►o,•• n• - . III .,-•-• a itlgation Administrator's Review/Recommendation: er Revenue R- •ing Bo ,•s, Respec ve y - No comments to supplement this report 71k., • - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) UMMARY; • Bob Thistle of Springsted, our financial advisory firm on bond issues, will be present at the April 12 , 1993 Council Meeting to discuss the sale of advance refunding bonds. Advance refunding is the issuance of bonds to pay off outstanding bonds before their due date. A cost savings is realized because the new(refunding) bonds are issued at a lower interest rate than the old(refunded) bonds. The bond issues being considered for advance refunding are: III • General Obligation Water Revenue Bonds, Series 1991A($2 ,875, 000) • General Obligation Tax Increment Bonds, Series 1989B($930, 000) Basically what is being proposed is capsulized in the following paragraphs. The net interest rate on the callable maturities of the General Obligation Water Revenue Bonds, Series 1991A is 6.77%. Based on current market conditions it is estimated that refunding bonds could be issued at a net interest rate of 5.37% which would result in a total savings of $166, 000. • The net interest rate on the callable maturities of the General Obligation Tax Increment Bonds, Series 1989B is 6.71%. Based on current market conditions it is estimated that refunding bonds could be issued at a net interest rate of 4. 69% which would result in a total savings of $42,900. The attached resolutions provide for the sale of $2, 310, 000 General Obligation Water Revenue Refunding Bonds, Series 1993A and $720,000 General Obligation Tax Increment Refunding Bonds, Series 1993B. . Don Bra er, Rinance Dir r-Treasurer ORECOMMENDATION: g Adopt Resolution 4359 -A Resolution Providing For The Competitive Negotiated Sale of $720,000 General Obligation Tax Increment Refunding Bonds, Series 1993B and Resolution 4360 - A Resolution Providing For The Competitive Negotiated Sale of $2,310,000 General Obligation Water Revenue Refunding Bonds, Series 1993A.