CC PACKET 02111997 - Laserfiche WebLink

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RECOMMENDATIONS Re: Recommendations for the Issuance of $690,000 General Obligation Improvement • Bonds, Series 1997A The proceeds of the bonds will be used to finance various street and water main repairs and replacement projects within the City. 1. Action Requested To establish the date and time of receiving bids and establish the terms and conditions of the offering. 2. Sale Date and Time Tuesday, March 11, 1997 at 10:30 A.M., with award by the City Council that evening at 7:00 P.M. 3. Authority and Purpose for the Bond Issue The bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, and will be used to finance various street and water main repair and replacement projects within the City. 4. Principal Amount of Offering $690,000, including $16,250 for issuance costs and $8,280 for the underwriter`s discount. Net proceeds available for construction costs will be approximately. $665,470. • 5. Repayment Term The first interest payment is due February 1, 1998. Principal will be paid on February 1, 2000 through 2013. 6. Source of Payments and Payment Cycle The bonds will be paid from special assessments against benefited property and general tax ad valorem levies. 7.. Prepayment Provisions The February 1, 2008 through 2013 maturities will be callable on February 1, 2007 and any day thereafter, at a price of par plus accrued interest. 8. Credit Rating Comments We recommend the City apply to Moody's Investors Service for a rating on the bonds. The City's rating for its general obligation debt is currently "Al." 9. Bank Qualification The City does not expect to issue over $10,000,000 of tax-exempt obligations in .1997 and therefore this issue will be bank- qualified. Issues which are bank-qualified receive interest rates which are lower than issues which are not bank-qualified. •