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2 <br />City Council Regular Meeting Minutes <br />December 11, 2012 <br />Page 3 <br />None. <br />V. REPORTS FROM COMMISSION AND STAFF. <br />None. <br />7 VI. GENERAL BUSINESS OF COUNCIL. <br />8 A. Resolution 12-093• Relating to $1,500,000 General Obligation Water and Sewer Revenue <br />9 Refunding Bonds Series 2013A• Awarding the Sale, Fixing the Form and Details and <br />10 Providing for the Execution and Delivery Thereof and Security Therefor and Levying Ad <br />I 1 Valorem Taxes for the Payment Thereof. Stacie Kvilvang, Ehlers & Associates, <br />12 presenting. <br />13 <br />14 Stacie Kvilvang, Ehlers & Associates, reported that three bids were received and opened on <br />15 December 11, 2012, for the General Obligation Water and Sewer Revenue Refunding Bonds, <br />16 Series 2013A. She indicated that they are not expending the term but merely refinancing a term <br />17 already in place. She said they held a rating call from Standards and Poor who affirmed the <br />18 City's AA rating. Ms. Kvilvang said notable items are access to the Twin Cities metro market <br />19 area, which is favorable, a healthy financial profile, and a strong general fund balance amortizing <br />20 18% of the debt. <br />21 <br />22 Ms. Kvilvang said the lowest responsible bidder is Raymond James and Associates at 1.5177% <br />23 for $1,477,000. She stated this will result in a savings of future value of $236,000 or $21,000 <br />24 per year. <br />25 <br />26 Councilmember Stille thanked Ms. Kvilvang and staff for their work on these bonds, adding we <br />27 are covered. <br />28 <br />29 Mayor Faust asked what the previous rate was. Ms. Kvilvang said the previous rate was in the <br />30 range of 34% range and will now be just over 1.5%. <br />31 <br />32 Mayor Faust noted that in 2003 those rates were considered low. <br />33 <br />34 Councilmember Stille said they will only be borrowing at less than 1.5%, which is a factor of the <br />35 market. <br />36 <br />37 Motion by Councilmember Jenson, seconded by Councilmember Gray, to adopt Resolution 12- <br />38 093; Relating to $1,500,000 General Obligation Water and Sewer Revenue Refunding Bonds, <br />39 Series 2013A; Awarding the Sale, Fixing the Form and Details and Providing for the Execution <br />40 and Delivery Thereof and Security Therefor and Levying Ad Valorem Taxes for the Payment <br />41 Thereof. <br />42 <br />43 Motion carried unanimously. <br />44 <br />45 B. Resolution 12-094• Setting the 2013 General Operating Budget and Property Tax Levy, <br />46 Shelly Rueckert Finance Director, presenting, <br />5 <br />