CC MINUTES 05272014 - Laserfiche WebLink

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4 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes May 27, 2014 Page 7 Stacie Kvilvang, Ehlers & Associates, reviewed the resolution with the Council and indicated that the proposed issue is $3,750,000 General Obligation Tax Increment Revenue Refunding Bonds, Series 2014B. The proposed issue includes financing for the following purpose: To refinance the Housing and Redevelopment Authority of the City of St. Anthony's $4,640,000 Tax Increment Revenue Bonds (Silver Lake Village Phase IA Housing), Series 2007. The City is utilizing the existing debt service reserve fund of $379,750 to buy down a portion of the existing Bonds. Debt service will be paid from tax increment revenues generated from the for -sale condominiums within TIF District 3-5. Interest rates on the obligations proposed to be refunded are .25% to 3.35%. The refunding is expected to reduce interest expense by approximately $1.1 million over the next 17 years. The Net Present Value Benefit of the refunding is estimated to be approximately $902,000 equal to 22.30% of the refunded principal. This refunding is considered to be a Current Refunding as the obligations being refunded are either callable (pre -payable) now, or will be within 90 days of the date of issue of the new Bonds. Councilmember Stille asked Ms. Kvilvang to explain this for the residents. She noted there is no impact to the tax payers. Interest rates would be reduced. Councilmember Roth asked if these bonds went into default and the Council did not take any action, would the default be the City and the HRA. Mayor Faust stated there are four sources for funding with three performing and one under- performing. Councilmember Stille stated there is a certain amount of reputational risk in this. He felt this purchase was necessary and Council should move forward. Motion by Councilmember Roth, seconded by Councilmember Stille, to adopt Resolution 14- 039; a Resolution Providing for the Sale of $3,750,000 General Obligation Tax Increment Revenue Refunding Bonds, Series 2014B. Motion carried unanimously. C. Resolution 14-040; Providing for the Sale of $1,330,000 General Obligation Refunding Bonds, Series 2014C. Stacie Kvilvang, Ehlers & Associates will be presenting. Stacie Kvilvang, Ehlers & Associates, reviewed the resolution with the Council and indicated that the proposed issue is $1,330,000 General Obligation Refunding Bonds, Series 2014C.