CC PACKET 03272012 - Laserfiche WebLink

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The refunding of the Refunded Bonds is being carried out for the purposes described in Minnesota Statutes, Section 475.67, subdivision 3, subsection (b)(2)(i) and in compliance with Minnesota Statutes, Section 469.034, subdivision 2 and Chapter 475. This Council hereby determines to issue and sell the Bonds to defray the expense incurred and estimated to be incurred by the City in making the Improvements, refinance the Facilities and refund the Refunded Bonds, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65. The Bonds are issued pursuant to Minnesota Statutes, Chapter 429 and Chapter 475. The allocation of the Bonds for the purpose of financing the Improvements and refunding the Refunded Bonds is set forth in Section 2.01 hereof. No petition requesting a vote on the question of adopting the Plan or issuing the Bonds has yet been filed. The sale of the Bonds to the Purchaser is hereby ratified on the terms provided herein, provided that no such petition is filed within thirty days of November 8, 2011. 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent financial advisor, to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms and Conditions of Sale for the Bonds, U proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened and publicly read and considered, and the purchase price, interest rates and true interest cost under the terms of each bid have been determined. The most favorable proposal received is that of of , and associates (the "Purchaser"), to purchase the Bonds at a price of $ the Bonds to bear interest at the rates set forth in Section 2.01. The proposal is hereby accepted, and the Mayor and the City Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.03. Savings. It is hereby determined that: (i) by the issuance of the Bonds to refund the Refunded Bonds, the City will realize a substantial interest rate reduction, a gross savings of approximately $ and a present value savings (using the yield on the Bonds, computed in accordance with Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), as the discount factor) of approximately $ ; and (ii) as of the Redemption Date and respective Crossover Date, the sum of (i) the present value of the debt service on the Bonds, computed to their stated maturity dates, after deducting any premium, using the yield of the Bonds as the discount rate, plus (ii) any expenses of the refunding payable from a source other than the proceeds of the Bonds or investment earnings thereon, is lower by % than the present value of the debt service on the Refunded Bonds, exclusive of any premium, computed to their stated maturity dates, using the yield of the Bonds as the discount rate. -2-