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City Council Regular Meeting Minutes <br />August 15, 2024 <br />Page 2 <br />1 <br />2 IV.PUBLIC HEARING - NONE. <br />3 <br />4 V.REPORTS FROM COMMISSION AND STAFF - NONE. <br />5 <br />6 VI.GENERAL BUSINESS OF COUNCIL. <br />7 <br />A.8 Resolution 24-053 – Providing for the Sale of General Obligation Improvement Bonds, <br />9 Series 2024A. <br />10 <br />11 Ehlers Representative Keith Dahl reviewed the proposed issue of $2,000,000 General Obligation <br />12 Improvement Bonds, Series 2024A includes financing the 2024 road reconstruction projects in <br />13 the City. The Bonds are being issued for a 10-year period. Debt service will be paid from ad <br />14 valorem property taxes and special assessments. The City intends to levy a total of $701,900 in <br />15 special assessments to benefitting property owners, of which approximately $210,570 (30%) is <br />16 anticipated to be collected in pre-paid assessment. The Bonds have been reduced by this amount <br />17 accordingly. The remaining $491,330 of special assessments will be collected in years 2025 – <br />18 2034 at a rate of 2% over the True Interest Costs of the Bonds. Annual assessments will be paid <br />19 on an equal principal basis. <br />20 <br />21 The S&P Global Ratings “AA”. The City’s most recent bond issues were rated by S&P Global <br />22 Ratings. The current rating on those bonds is “AA”. The City will request a new rating for the <br />23 Bonds. <br />24 <br />25 Mr. Dahl reviewed the basis for recommendation, method of sale/placement, premium pricing, <br />26 review of existing debt, continuing disclosure, arbitrage monitoring, investment of bond <br />27 proceeds, risk factors, other service providers and summary. The proposed debt issuance <br />28 schedule is as follows: <br />29 <br />30 Pre-Sale Review by City Council August 13, 2024 <br />31 Conference Call with Rating Agency and Due Diligence Call to <br />32 Review Official Statement Week of Sept 2 <br />33 Distribute Official Statement August 29, 2024 <br />34 City Council Meeting to Award Sale of the Bonds September 10, 2024 <br />35 Estimated Closing Date October 1, 2024 <br />36 <br />37 Councilmember Jenson asked when the repayment of the bonds would begin and Mr. Dahl stated <br />38 it would begin in February 2025 (Interest). Principal repayment would begin August 1, 2025. <br />39 <br />40 Councilmember Stephens asked why the amounts are different and Mr. Dahl stated it was <br />41 adjusted from $2.2M to $2.0M due to adjustments. <br />42 <br />43 Councilmember Doolan asked about City residents purchasing bonds that the City is offering. <br />44 Mr. Dahl stated interested residents should reach out to a financial investment advisor. <br />45 <br />6