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12 <br />MEMORANDUM <br />DATE: September 6, 2010 <br />TO: City Council <br />FROM: Mike Morrison, City Manager <br />Roger Larson, Finance Director <br />ITEM: GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2005A <br />The 2005 road improvement project consisted of the reconstruction of 3151 Avenue <br />(Wilson Street to Stinson Boulevard), Roosevelt Street, St. Anthony Road and Edward <br />Street (3 191 Avenue to 32" d Avenue). <br />To fund the project, the City sold G.O. Improvement Bonds totaling $1,695,000. Tax <br />regulations require that an arbitrage calculation be made on the fifth anniversary date of <br />the bonds. <br />Ehlers and Associates have completed the analysis and has provided the City a report on <br />the arbitrage calculations and findings. The funds subject to this arbitrage computation <br />are the 2005 Street Improvement Construction Fund and the 2005 Bond Fund. <br />In summary, Ehlers has determined that no arbitrage rebate or yield restriction liability <br />exists and no future filings with the IRS are required. <br />As part of closing out of the project and arbitrage compliance, the balance in the <br />Construction Fund (totaling $33,958.24) should be transferred to the Bond Fund and used <br />for debt service payments. <br />Recommendation: <br />Council approves resolution #10-059 closing out the 2005 Construction Fund #504 and <br />transfer the balance of $33,958.24 to the 2005A Bond Fund #503 <br />