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HomeMy WebLinkAboutCC RES 07-028 RESOLUTION PROVIDING FOR THE SALE OF $2,050,000 GENERAL OBLIGATION IMPROVEMENT BONDS SERIES 2007A Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 104192 Box: 31 Folder: RES 2007 Document: CC RES 07-028 RESOLUTION PROVIDING FOR THE SALE OF $2,050,000 GENERAL OBLIGATION IMPROVEMENT BONDS SERIES 2007A • City of St. Anthony Resolution No. 07- 028 Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $2,050,000 General Obligation Improvement Bonds Series 2007A A. WHEREAS, the City Council of the City of St. Anthony Village, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's$2,050,000 General Obligation Improvement Bonds Series 2007A (the "Bonds"), to finance the cost of the 2007 street reconstruction program in the City; and B. WHEREAS,the City has retained Ehlers&Associates,Inc.,in Roseville,Minnesota("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Anthony Village, Minnesota: 1. Authorization;Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. • 2. Meeting; Proposal Opening. The City Council shall meet at 7:00 P.M. on March 27,2007, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale,the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member ,fflu eyeo and,after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this /3A— day of Fe ua , 2007. • City Clerk 'ntho • I CITY OF ST. ANTHONY VILLAGE, MINNESOTA PRESALE REPORT FEBRUARY 139 2007 Proposed Issue: $2,050,000 General Obligation Improvement Bonds Series 2007A Purpose: The Bonds will finance the 2007 road reconstruction projects. Description: These Bonds are being issued for the purpose of financing the construction of roadways and sewer and water improvements and are being issued pursuant to Minnesota Statues, Chapter 429 and 475. Term/Call Feature: The Improvement Bonds are being issued for a 15-year period. Principal on the bonds will be due on February 1 in the years 2009 through 2023. Bonds • maturing February 1,2015 and thereafter will be subject to prepayment at the discretion of the City on February 1, 2014. Funding Sources: The Bonds are general obligations of the City and as such are secured by a pledge of the City's full faith, credit and taxing powers. Under Minnesota Statutes, Chapter 429, principal and interest on the Bonds is payable from special assessments against benefiting property owners and a tax levy. The special assessments amount is$523,454 and will be levied in the years 2007 through 2021 for collection in 2008 through 2022 at a rate of 2.0%per annum over the true interest cost of the Bonds. The remaining balance will be paid from a tax levy. The required 105%coverage on the Bonds shows a need for the City to levy approximately$144,000 annually for this project. Discussion Issues: Principal payments maturing in 2008 through 2023 are structured to maintain level debt service in the amount of approximately $190,000 per year and assumes special assessments are paid on a level payment basis. The first interest payment on the Bonds will be February 1, 2008 and semiannually thereafter on February 1 and August 1. The projected debt service and flow of funds are attached to this report. Prepared by Ehlers&Associates, Inc. • Schedule: Pre-Sale Review: February 13, 2007 Distribute Official Statement: March 15, 2007 Conference with Rating Agency: Week of March 19, 2007 Bond Sale: March 27, 2007 Estimated Closing Date: April 24, 2007 Attachments: Resolution authorizing Ehlers to proceed with bond sale Cash flow Schedule Ehlers Contacts: Financial Advisors: Stacie Kvilvang and Sid Inman (651)-697-8500 Bond Analysts: Diana Lockard(651) 697-8534 • Debbie Holmes (651) 697-8536 Bond Sale Coordinator: Connie Kuck(651) 697-8527 The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. Prepared by Ehlers& Associates, Inc.