HomeMy WebLinkAbout2019.03.04 RESO 2019-11 Call of Outstanding GO BondsRESOLUTION NO. 2019-11
RESOLUTION AUTHORIZING THE CALL OF THE OUTSTANDING
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007A
WHEREAS, by a resolution duly adopted on September 17, 2007 (the "Resolution"), the
City issued $1,230,000 original principal amount of General Obligation Improvement Bonds,
Series 2007A, dated October 1, 2007 (the "Bonds"). The City has sufficient funds on hand in the
debt service account of the General Obligation Improvement Bonds, Series 2007A Fund (the
"Debt Service Account") to call the remaining $150,000 outstanding principal amount of the
Term Bond maturing February 1, 2021, and the $110,000 outstanding principal amount of the
Term Bond maturing February 1, 2023 on May 1, 2019, at a price of par plus accrued interest.
NOW, THEREFORE, be it resolved by the City Council of the City of Hugo,
Minnesota, as follows:
1. The City Council hereby determines that there exists sufficient funds in the Debt
Service Account to prepay on May 1, 2019, $150,000 aggregate principal amount of the Term
Bond maturing on February 1 of the year 2021, and $110,000 aggregate principal amount of the
Term Bond maturing on February 1 of the year 2023, and the interest due thereon.
2. U.S. Bank National Association, Saint Paul, Minnesota, the paying agent for the
principal and interest on the Bonds, is hereby authorized and directed to cause the Notice of Call
for Redemption attached hereto as Exhibit A to be given in accordance with the provisions of the
Resolution.
3. No further action shall be required of the City Council to complete prepayment of
the Bonds.
Whereupon said resolution was declared passed and adopted this 4th day of March 2019.
Tom Veidt, Mayor
ATTEST:
Michele Lindau, City Clerk
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007A
CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Hugo,
Washington County, Minnesota, there have been called for redemption and prepayment on
May 1, 2019
those outstanding bonds of the City designated General Obligation Improvement Bonds,
Series 2007A, dated October 1, 2007, having stated maturity dates or subject to mandatory
redemption in the years 2021 through 2023 and totaling $260,000 in principal amount and
having CUSIP numbers listed below:
Year
Amount
CUSIP Number*
2021
$150,000**
444582JSO
2023
$110,000***
444582JU5
The bonds are being called at a price of par plus accrued interest to May 1, 2019, on which date
all interest on the bonds will cease to accrue. Holders of the bonds hereby called for redemption
are requested to present their bonds for payment at the office of U.S. Bank National Association,
Attention: Paying Agent Services, 60 Livingston Avenue, Saint Paul, Minnesota 55107.
Dated: March 4, 2019.
BY ORDER OF THE CITY COUNCIL
CITY OF HUGO, MINNESOTA
/s/ Michele Lindau
Clerk
The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is
any representation made as to their correctness indicated in the notice. They are included
solely for the convenience of the holder.
** Tenn Bond maturing February 1, 2021
* * * Tenn Bond maturing February 1, 2023
A-1
11499609v2
Preliminary
$264,035
City of Hugo, Minnesota
Redemption of General Obligaiton Improvement Bonds, Series 2007A
Debt Service Comparison
Date
Old Net D/S
Savings
02/01/2020
85,640.00
85,640.00
02/01/2021
82,602.50
82,602.50
02/01/2022
69,565.00
69,565.00
02/01/2023
46,867.50
46,867.50
Total -
$284,675.00
$284,675.00
PV Analysis Summary (Net to Net)
NetFV Cashflow Savings................................................................................................................................................... 284,675.00
GrossPV Debt Service Savings......................................................................................................................................... 284,675.00
Net PV Cashflow Savings @ 0.000%(Bond Yield)............................................................................................................ 284,675.00
TotalCash contribution...................................................................................................................................................... (264,035.00)
NetPresent Value Benefit.................................................................................................................................................. $20,640.00
Net PV Benefit / $260,000 Refunded Principal................................................................................................................ 7.938%
Net PV Benefit / $284,675.00 PV Refunded Debt Service.................................................................................................. 7.250%
Redemption Information
RedemptionDate............................................................................................................................................................... 5/01/2019
2019 RedeinPhm OF2007A / SWGLEPVRMZ / 2/73/2019 / 4:54 PM
Z,Springsted