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To: Jay Hartman — Interim City Manager <br />Roger Larson — Finance Director <br />From: Stacie Kvilvang <br />Date: November 8, 201 I <br />Subject: Refinancing of Public Facilities Lease Revenue Bonds, Series 2003 <br />In 2003, the City issued $5,530,000 in lease revenue bonds to finance the construction of the Fire <br />Station and Public Works Facility. The date on which these bonds can be called (refinanced or paid <br />off) is February 1, 2013. However, the City has the ability to complete what is called an advance <br />refunding on any bond issue, meaning you can refinance it prior to the call date, once in the life of the <br />bond. <br />We are recommending that these bonds be refinanced at some point in 2012 to allow the City to <br />benefit from interest savings from converting the bonds from lease revenue bonds to GO bonds. In <br />order to complete the refinancing at some future date, the City has to prepare a 5 -Year Capital <br />Improvement Plan (CIP) for the refinancing and hold a public hearing to solicit comment and <br />feedback from the community. Upon conclusion of the public hearing, the Council must approve the <br />CIP via a 3/5th vote. <br />At the October 25, 2011 City Council meeting, the Council set the public hearing date for November <br />8, 2011. Upon conclusion of the public hearing process, the City will be situated to refinance these <br />bonds at any time in the future. At the time of refinancing, Ehlers will prepare a full pre -sale report <br />outlining the terms of the financing and the estimated savings the City can expect. <br />Please contact me at 651-697-8506 with any questions. <br />E H L E RS 3060 Centre Pointe Drive <br />_ Roseville, MN 55113-1105 <br />LEADERS IN PUBLIC FINANCE Phone: 651-697-8506 <br />Fax: 651-697-8555 <br />skvilvang@ehlers-inc.com <br />