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City Council Regular Meeting Minutes <br />June 10, 2025 <br />Page 3 <br />1 years 2026 to 2040 at a rate of 2% over the True Interest Costs of the Bonds. Annual <br />2 assessments will be paid on an equal principal basis. <br />3 <br />4 $1,095,000 Mill and Overlay Portion – This portion of the Bonds is being issued for a 10- <br />5 year period. The City is utilizing $525,000 in existing TIF Funds from TIF Districts 3-5 <br />6 to pay for the portion of 39th Avenue improvements that run through the TIF District. The <br />7 size of bonds has been reduced to account for these funds. Debt service will be paid from <br />8 special assessments and taxes. The City intends to levy a total of $447,513 in special <br />9 assessments to benefit property owners, of which approximately $223,757 (50%) is <br />10 anticipated to be collected in pre-paid assessments. The Bonds have been reduced by this <br />11 amount accordingly. The remaining $223,756 of special assessments will be collected in <br />12 the years 2026 to 2035 at a rate of 2% over the True Interest Costs of the Bonds. Annual <br />13 assessments will be paid for on an equal principal basis. <br />14 <br />15 Ms. Kvilvang reviewed that the Bonds are being issued under Minnesota Statutes, Chapters 429 <br />16 and 475. Because the City is assessing at least 20% of the project costs, the Bonds can be a <br />17 general obligation without a referendum and will not count against the City’s debt limit. The <br />18 Bonds will be general obligations of the City for which its full faith, credit, and taxing powers <br />19 are pledged. <br />20 <br />21 The Bonds are being issued for a term of 15 years. The principal on the Bonds will be due on <br />22 February 1 in the years 2028 through 2041. Interest will be due every six months beginning <br />23 August 1, 2026. The Bonds will be subject to prepayment at the discretion of the City on <br />24 February 1, 2035 or any date thereafter. The City will be able to designate the Bonds as “bank <br />25 qualified” obligations. The current rating on the bonds is “AA+”. <br />26 <br />27 Councilmember Doolan asked what the value is for being AA+. She also asked Ms. Kvilvang to <br />28 provide the interest rates due to the City’s upgrade in rating. Ms. Kvilvang stated it is most likely <br />29 5-10 basis points. <br />30 <br />31 Mayor Pro Team thanked Ms. Kvilvang for her thoroughness and accuracy, and for helping the <br />32 City with these bond sales. <br />33 <br />34 Motion by Councilmember Elnagdy, seconded by Councilmember Doolan, to approve <br />35 Resolution 25-044 – Providing for the Sale of General Obligation Improvement Bonds, Series <br />36 2025A. <br />37 <br />38 Motion carried 4-0. <br />39 <br />40 X. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. <br />41 <br />42 City Manager Yunker had no report. <br />43 <br />44 Councilmember Randle stated on May 29 that he attended the Sister Cities Meeting. More <br />45 Finnish representatives are coming to the USA this year, and the Ambassador of Finland will be <br />46 here July 26-30, 2025. A picnic is planned with City Staff and other representatives. <br />5