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City Council Regular Meeting Minutes February 14, 2006 Page 5 1 Ms. Kvilvang explained the second portion of the bond is the 2004 issuance. She noted they 2 were three -year temporaries. This will be a 15 -year bond as well. 3 4 Ms. Kvilvang said the 1998 GO Improvement Bond is something that is looked at annually. 5 They were originally issued in the amount of $725,000 and are callable in the amount of 6 $460,000 which matures on February 1 in the years 2007 through 2014. Current coupon rates 7 are 4.50% to 5.00 %. 9 Councilmember Stille asked whether the interest rates are built in. He said the refinancing of the 10 $475,000 saves $14,000. Ms. Kvilvang stated it is in our best interest to sell these. She said they 11 do try to have cost savings on the closing costs. She added that there will not be re- amortizing 12 and the length is kept the same. 13 14 Motion by Councilmember Gray, seconded by Councilmember Stille to adopt Resolution 06 -024 15 re: Resolution Providing for the Sale of $3,190,000 General Obligation Improvement Bonds 16 Series 2006A. 17 18 Motion carried unanimously. 19 20 B. Resolution 06 -025: Authorize an increase in the principal amount of interfund loans for 21 Tax Increment Financing District No 3 -5 22 Ms. Kvilvang explained that on June 14, 2005, the HRA approved an interfund loan in an 23 amount up to $200,000 for various administrative and capital expenditures in TIF District 3 -5, in 24 connection with the Northwest Quadrant Redevelopment Project. The reason for the 25 advancement to this District is that the first increments generated in the District will not occur 26 until 2006 and may not be sufficient to pay for advancements to the District by the HRA and 27 other third party obligations. 28 29 She noted that to date, the HRA has not advanced any funds to the TIF District under the Prior 30 Loan Resolution. However, the HRA anticipates it will now need to advance funds to the 31 District to pay for various project costs in excess of the $200,000. In order to accommodate this 32 expenditure and future unforeseen expenditures, the interfimd loan cap is being raised to 33 $500,000. 34 35 Ms. Kvilvang indicated that the "blanket' resolution is so the HRA will not have to complete an 36 interfimd loan every time it is going to expend administrative costs in this district. 37 38 Motion by Councilmember Stille, seconded by Councilmember Horst to adopt Resolution 06- 39 025 re: Authorizing an Increase in the Principal Amount of Interfund Loans for Tax Increment 40 Financing District No. 3 -5. 41 42 Motion carried unanimously. 43 44 C. Resolution 06 -026. Approve preliminary lay -out for Silver Lake Road Hennepin County 45 Representatives presenting, 46 Craig Twinem, Hennepin County Transportation Department, along with Commissioner 47 Stenglein presented.