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<br />Item No: 8.D. <br />Meeting Date: February 27, 2017 <br />Type of Business: Council Consent <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 8718 Certifying the City of Mounds View’s Share of <br />Indebtedness Related to the City of Spring Lake Park’s <br />$1,090,000 General Obligation Equipment Certificates of <br />Indebtedness, Series 2017A, the Proceeds of Which Are to be <br />Used By the Spring Lake Park Fire Department, Inc. <br /> <br />Introduction: The City as a member of the joint fire department with the Cities of Spring Lake <br />Park and Blaine (SBM Fire Department) from time to time has a need to purchase capital <br />equipment. The three cities have decided that it is in their best interest to finance significant <br />capital purchases with equipment certificates. The City of Spring Lake Park has agreed to be <br />the primary issuer of the equipment certificates. The total cost of equipment to be purchased is <br />$1,109,000. The City Council approved the terms of sale for Equipment Certificates of <br />Indebtedness and a supplement to the Joint Powers Agreement in resolution 8714 on February <br />13, 2017 which provided authorization to move forward. This is consistent with past bond and <br />certificate issuances. <br /> <br />Discussion: The City of Spring Lake Park has generously agreed to act as the conduit for the <br />sale of General Obligation Equipment Certificates of Indebtedness for the three cities. The <br />bond sale has occurred and favorable results will allow the final amount to be reduced to <br />$1,090,000 there was a reoffering premium of $58,956 which covered the issuance costs of <br />$34,340 and the underwriter’s discount of $4,633 and rounding of $983. Each city will pay their <br />pro-rata share based on the formula in the Joint Powers Agreement. Currently our share is <br />15.819% or $172,427. To formalize the City’s proportionate share of the equipment certificates <br />of indebtedness the City Council would need to adopt the attached resolution and direct the <br />Mayor and City Administrator to sign the attached note acknowledging our obligation to Spring <br />Lake Park for our proportionate share. <br /> <br />Recommendation: Staff recommends approval of Resolution 8718. <br /> <br />Respectfully submitted, <br /> <br /> <br />________________________ <br />Mark Beer <br />Finance Director