HomeMy WebLinkAbout2015-11-18 PACKET 04.E. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #� �
DATE 11/18/15 �
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PREPARED BY: Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST:
Consider authorizing call of General Obligation Water Revenue Refunding bonds of 2009B.
STAFF RECOMMENDATION:
Authorize call of General Obligation Water Revenue Refunding bonds of 2009B.
BUDGET IMPLICATION:
BUDGETED AMOUNT ACTUAL AMOUNT
ADVISORY COMMISSION ACTION:
DATE REVIEWED APPROVED DENIED
❑ PLANNING ❑ ❑ ❑
❑ PUBLIC SAFETY ❑ ❑ ❑
❑ PUBLIC WORKS ❑ ❑ ❑
❑ PARKS AND RECREATION ❑ ❑ ❑
❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑
❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑
❑ ❑ ❑ ❑
SUPPORTING DOCUMENTS:
� MEMO/LETTER:
� RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS:
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City Administrator Date
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H:\Council items\council-action template.docx
Cottage
Grove
�here Pride andProsperity Meet
To: Mayor and City Council Members
Charlene Stevens, City Administrator
From: Robin Roland, Finance Director ���
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Date: November 12, 2015
Subject: Authorize call of General Obligation Water Revenue Refunding bonds of 2009B
Introduction
Staff is requesting that the City Council authorize calling the General Obligation Water Revenue Refunding
bonds of 2009B.
Discussion
The 2009B General Obligation Water Revenue Refunding Bonds have outstanding principal payments as
follows:
Year Principal
2017 $115,000
2018 120,000
2019 125,000
2020 130,000
Total $490,000
Sufficient funds are available in the Water Utility Fund to pay for the call of these bonds on February 1, 2016.
Interest savings of$48,825 over the next five years will be achieved with this call.
Action Requested
Adoptthe attached resolution authorizing Ehlers and Inc.,ourfinancial advisors,to begin the process of calling
the 2009B General Obligation Water Revenue Refunding Bonds.
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF COTTAGE GROVE, MINNESOTA
HELD: November 18, 2015
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Cottage Grove, Washington County, Minnesota, was duly held at City Hall on November 18,
2015, at 7:00 p.m. for the purpose, in part, of authorizing the call of certain outstanding General
Obligation Water Revenue Refunding Bonds, Series 2009B.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE CALL OF THE OUTSTANDiNG
GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 2009B
WHEREAS, by Resolution duly adopted on March 18, 2009 (the "Resolution"),the City
issued $1,205,000 original principal amount of General Obligation Water Revenue Refunding
Bonds, Series 2009B, dated April 16, 2009 (the "Bonds"). The City has sufficient funds on hand
in the debt service account of the General Obligation Water Revenue Refunding Bonds, Series
2009B Fund (the "Debt Service Account")to call the remaining$490,000 outstanding principal
amount of the February l, 2017, 2018, 2019 and 2020 maturities of the Bonds on February 1,
2016, at a price of par plus accrued interest.
NOW, THEREFORE,be it resolved by the City Council of the City of Cottage Grove,
Minnesota, as follows:
1. The City Council hereby determines that there exists sufficient funds in the Debt
Service Account to prepay on February 1, 2016, $490,000 principal amount of Bonds maturing
or subject to mandatory redemption on February 1 of the years 2017,2018, 2019 and 2020, and
the interest due thereon.
2. The City Finance Director of the City of Cottage Grove, Minnesota, where the
principal and interest on the Bonds are payable, 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.
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The motion for the adoption of the foregoing resolution was duly seconded by Member
, and upon vote being taken thereon,the following voted in favor thereof:
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF COTTAGE GROVE
I, the undersigned,being the duly qualified and acting City Clerk of the City of Cottage
Grove, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and
foregoing extract of minutes with the original thereof on file in my office, and that the same is a
full,true and complete transcript of the minutes of a meeting of the City Council duly called and
held on the date therein indicated, insofar as such minutes relate to authorizing the call of the
outstanding General Obligation Water Revenue Refunding Bonds, Series 2009B.
WITNESS my hand officially on November 18, 2015.
City Clerk
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EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 2009B
CITY OF COTTAGE GROVE, WASHINGTON COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Cottage Grove,
Washington County, Minnesota,there have been called for redemption and prepayment on
February 1, 2016
those outstanding bonds of the City designated General Obligation Water Revenue Refunding
Bonds, Series 2009B, dated April 16, 2009, having stated maturity dates or subject to mandatory
redemption in the years 2017, 2018, 2019 and 2020 and totaling $490,000 in principal amount
and having CUSIP numbers listed below:
Year CUSIP Number*
2017 221651 V25
2018 221651 V33
2019 221651 V41
2020 221651 V58
The bonds are being called at a price of par plus accrued interest to February 1, 2016, 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 the City of Cottage
Grove, 12800 Ravine Parkway South, Minnesota 55016.
Dated: November 18, 2015.
BY ORDER OF THE CITY COUNCIL
CITY OF COTTAGE GROVE, MINNESOTA
/s/Joe Fischbach, Cit�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.
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