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10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />45 <br />City Council Regular Meeting Minutes <br />August 15, 2024 <br />Page 2 <br />IV. PUBLIC HEARING - NONE. <br />V. REPORTS FROM COMMISSION AND STAFF - NONE. <br />VI. GENERAL BUSINESS OF COUNCIL. <br />A. Resolution 24-053 — Providing for the Sale of General Obligation Improvement Bonds, <br />Series 2024A. <br />Ehlers Representative Keith Dahl reviewed the proposed issue of $2,000,000 General Obligation <br />Improvement Bonds, Series 2024A includes financing the 2024 road reconstruction projects in <br />the City. The Bonds are being issued for a 10-year period. Debt service will be paid from ad <br />valorem property taxes and special assessments. The City intends to levy a total of $701,900 in <br />special assessments to benefitting property owners, of which approximately $210,570 (30%) is <br />anticipated to be collected in pre -paid assessment. The Bonds have been reduced by this amount <br />accordingly. The remaining $491,330 of special assessments will be collected in years 2025 — <br />2034 at a rate of 2% over the True Interest Costs of the Bonds. Annual assessments will be paid <br />on an equal principal basis. <br />The S&P Global Ratings "AA". The City's most recent bond issues were rated by S&P Global <br />Ratings. The current rating on those bonds is "AA". The City will request a new rating for the <br />Bonds. <br />Mr. Dahl reviewed the basis for recommendation, method of sale/placement, premium pricing, <br />review of existing debt, continuing disclosure, arbitrage monitoring, investment of bond <br />proceeds, risk factors, other service providers and summary. The proposed debt issuance <br />schedule is as follows: <br />Pre -Sale Review by City Council August 13, 2024 <br />Conference Call with Rating Agency and Due Diligence Call to <br />Review Official Statement Week of Sept 2 <br />Distribute Official Statement August 29, 2024 <br />City Council Meeting to Award Sale of the Bonds September 10, 2024 <br />Estimated Closing Date October 1, 2024 <br />Councilmember Jenson asked when the repayment of the bonds would begin and Mr. Dahl stated <br />it would begin in February 2025 (Interest). Principal repayment would begin August 1, 2025. <br />Councilmember Stephens asked why the amounts are different and Mr. Dahl stated it was <br />adjusted from $2.2M to $2.OM due to adjustments. <br />Councilmember Doolan asked about City residents purchasing bonds that the City is offering. <br />Mr. Dahl stated interested residents should reach out to a financial investment advisor. <br />